Crypto’s Red-Hot Stock Trade Shows Signs of Cooling
The premiums crypto stock companies see on the assets they hold are starting to shrink and sometimes go negative.
Cracks are beginning to show in the booming market for stocks of companies—like Michael Saylor’s Strategy—that do little other than hold cryptocurrencies like bitcoin. These stocks became a wildly popular way for investors to speculate on bitcoin and recently on more exotic cryptocurrencies.
Valuations for Strategy, and for others including bitcoin holder Semler Scientific and solana holder Upexi, have come down a bit, while companies that own more speculative tokens have fallen significantly, in some cases below the value of the crypto they hold. The structure of the companies and the leverage some of them use mean sell-offs can accelerate quickly.
