Crypto-Hoarding Firms Pose Fresh Threat to Market After Rout

Crypto-hoarding treasury companies, which helped turbocharge a digital-asset rally in last year’s first nine months, are now at risk of sparking market contagion as selling pressure mounts.

Publicly traded digital-asset treasuries, or DATs, have operated on the premise that accumulating specific cryptocurrencies would generate sustained stock market premiums. With the crypto market enduring its worst selloff since the aftermath of FTX’s collapse, the cracks in that narrative are starting to show.