Crypto's Hottest Trade Collapses: Firms Face Wipeout After Massive Gains

• Digital Asset Treasuries (DATs), once a hot crypto trade, have seen significant declines, with some stocks falling over 86% after initial massive gains.
• The strategy, pioneered by Michael Saylor's Strategy Inc., involved public companies buying crypto with corporate cash, initially boosting share prices.
• Many DATs, like SharpLink Gaming Inc. (down 86%) and Greenlane Holdings (down 99%), now trade below the value of their crypto holdings.
• DATs raised over $45 billion to buy crypto, leading to debt burdens that are problematic as crypto holdings don't generate cash flow.
• Concerns are rising that DATs, including Strategy, may be forced to sell crypto to cover debts, potentially triggering a downward spiral in token prices.

Why It Matters: Corporate crypto investments are failing, threatening wider market stability.