Bitcoin treasury companies are facing a tough phase as their business model breaks down due to falling equity prices below Bitcoin net asset value. A deleveraging event on October 10 accelerated the shift, wiping out open interest across futures markets and weakening spot depth.

DAT stocks that once traded at premiums are now at discounts, with companies like Metaplanet and Nakamoto deep in the red. One firm, NAKA, plunged more than 98% from its peak, resembling wipeouts seen in memecoin markets.

Strategy raised $1.44 billion to ease investor fears over dividend and debt obligations during Bitcoin’s downturn. The cash reserve secures at least 12 months of dividend payments, with plans to extend it to 24 months. Bitwise CIO Matt Hougan stated that Strategy won’t be forced to sell Bitcoin if its share price drops.

Read more at CoinTelegraph: Bitcoin Treasury Firms Enter ‘Darwinian Phase’: Galaxy Research