Bitcoin treasury companies are bleeding as Bitcoin’s price flutters around $89,000. Metaplanet, one of the largest Bitcoin treasury companies after Strategy, has swung from over $600 million in unrealised profits in early October to around $530 million in unrealised losses as of December 1, according to data from Galaxy Research. The collapse mirrors Bitcoin’s 25% price drop from its October highs. With Bitcoin trading around $89,000, treasury companies that accumulated aggressively near the peak are now ...

Core Insights - BitMine Immersion Technologies, the largest corporate holder of Ethereum, is facing over $4 billion in unrealized losses due to a significant decline in Ethereum's price [1][3] - The company's ETH holdings amount to nearly 3.6 million, representing approximately 2.97% of Ethereum's total supply, with a goal of reaching 5% [2] - Ethereum's price has dropped 27.4% in the past month, now trading below $3,000, which has severely impacted BitMine's balance sheet [3] Financial Metrics - BitMine's ETH stack is currently valued at just under $10 billion, leading to unrealized losses of around $4.18 billion [3] - The company's market-to-net-asset-value (mNAV) ratio is at 0.73, with a diluted mNAV of 0.88, indicating a significant decline in asset value [4] - The stock performance of BitMine (BMNR) has seen a monthly dip of 49.8%, nearly double that of Ethereum [6] Industry Context - The challenges faced by BitMine are reflective of broader issues within digital asset treasury companies, as attracting new retail investors becomes increasingly difficult amid substantial losses [5] - Sharplink Gaming, the second-largest corporate holder of ETH, is also experiencing significant unrealized losses, with its stock down 35.15% over the past month [7] - Despite the losses, BitMine continues to actively purchase ETH, acquiring 110,288 ETH earlier this month [8]

Core Insights - Michael Saylor reaffirmed his commitment to the digital-asset treasury model during a recent downturn in the crypto market [1] Company Summary - Strategy Inc. purchased $835.6 million in Bitcoin over a week, marking its largest acquisition since July, bringing total holdings to 649,870 tokens valued at approximately $61.7 billion [2] - The company financed most of its Bitcoin purchases through proceeds from a euro-denominated preferred offering that closed last week [2] - Since initiating Bitcoin purchases in August 2020, Strategy's stock has surged over 1,500%, although it has declined about 57% from its all-time high of $473.83 on November 20, 2024 [6][7] Market Dynamics - Bitcoin has dropped nearly 30% from its early-October peak, undermining expectations of increased Wall Street involvement and the rise of mainstream ETFs [3] - Retail traders have been hesitant to re-enter the market due to previous downturns, leading to reduced liquidity [3] - The recent price drop has brought firms like Strategy closer to the value of their Bitcoin reserves, highlighting the volatility and risk associated with digital-asset treasury companies [4] Valuation Metrics - Strategy's mNAV, a key valuation metric, has plummeted from above 2.5 to just 1.2, indicating a significant reduction in the premium that previously attracted momentum investors [5]

Core Viewpoint - Sky Quarry Inc. is initiating a strategic plan to establish a digital asset treasury as part of its capital allocation strategy, aiming to enhance its business model and shareholder value [1][2]. Group 1: Digital Asset Strategy - The company recognizes the increasing institutional acceptance of digital assets and is exploring how a targeted digital asset strategy can complement its existing operations [2]. - The initiative is expected to improve transparency, enhance capital efficiency, and build long-term confidence in the company's financial foundation [2]. - Sky Quarry is in early discussions to create a diversified portfolio of digital assets, including digital currencies and stablecoins, supported by an internal working group and industry advisors [3]. Group 2: Energy Transition and Market Positioning - By leveraging digital technologies, Sky Quarry aims to position itself at the forefront of the energy transition, bridging traditional and renewable energy sectors through a digital marketplace [4]. - The company plans to expand its digital asset model across the entire energy spectrum as tokenization of real-world assets gains momentum [4]. Group 3: Leadership Perspective - The Executive Vice President and Co-Founder of Sky Quarry highlighted the shift in the conversation around digital assets from skepticism to institutional engagement, emphasizing the company's unique position to bring transparency and governance to blockchain innovations [5]. - The company anticipates that public companies could represent 10 to 20 percent of total digital asset market capitalization, which is crucial for driving adoption and unlocking capital in sectors like energy [7]. Group 4: Partnership Opportunities - Sky Quarry is inviting interested parties, including foundations and asset managers, to connect and collaborate on its vision for integrating traditional public markets with digital assets [7]. Group 5: Company Overview - Sky Quarry Inc. focuses on sustainable resource recovery, particularly in oil production and environmental remediation, with a mission to recycle waste asphalt shingles and reduce environmental impact [9].