Digital asset treasuries suffered losses after bitcoin’s crash in October. Around 180 public companies hold crypto on their balance sheets, with many following Michael Saylor’s playbook to accumulate bitcoin. The recent crypto sell-off hit Strategy, NAKA, ABTC, and BRR hard, with stocks tumbling. Ether-holding treasury companies like BMNR, SBET, and BTBT also saw significant drops. Strategy announced a $1.44 billion cash reserve fund to sustain dividends and debt payments. CEO Phong Le defended Strategy’s business model, comparing it to tech stocks. Bernstein analysts believe Strategy will weather the crypto winter, but copycat firms may struggle. Over 100 bitcoin treasury companies bought bitcoin above current market prices, leading to unrealized losses. Hivemind Capital founder Matt Zhang predicts many digital asset treasuries will become irrelevant. S&P 500 companies may hold bitcoin and ether as treasury diversifiers, but restructuring and consolidation among treasury firms may occur. Twenty One Capital, backed by Tether and SoftBank, debuted with a 19% stock drop, highlighting the challenges facing new entrants in the digital asset treasury space. CEO Jack Mallers emphasized the company’s focus on building cash flows and businesses, distinguishing it from passive holding companies.

Read more at Yahoo Finance: Crypto winter could spur ‘Darwinian phase’ for digital asset treasury companies