Key Insights
- The crypto market has lost more than 11% of its market cap today.
- Crypto treasury companies saw mixed performance amid the ongoing volatile scenario in the market.
- Despite the double-digit percentage decline in BTC, MicroStrategy still holds an unrealized profit of roughly 13%.
In the latest crypto news, the broader market crash has sparked discussions among traders, with many evaluating the potential reason behind it.
Notably, top players in the crypto market, including Bitcoin, ETH, SOL, and some other top crypto prices, have lost between 10% and 11% in pre-US hours today.
Notably, the selloff in the market has also fueled speculations over its potential impact on the crypto treasury companies.
Crypto treasury or digital asset treasury (DAT) firms have gained notable traction this year, with many entering the DeFi space.
This year, the trend showed a shift from only Bitcoin accumulation to altcoins like Ethereum, Solana, XRP, and others.
However, the latest dip has spooked traders, with many exploring how the crypto treasury firms are faring amid the gloomy scenario in the market.
So, here we explore the latest performances of the DATs and see how they are coping with the selling pressure across the broader financial markets.
Crypto News: Digital Assets Liquidation Hits $2 Bln
The crypto crash news has caught the attention of traders, with the global crypto market cap losing 11% to $2.78 trillion at the time of writing.
The Fear and Greed Index reading was at 11, indicating “extreme fear” sentiment in the market, further highlighting the ongoing selloff pressure.
Among the crypto prices, BTC price lost more than 10% and slipped to $82,000. On the other hand, the Ethereum price lost around 11% to $2,709, and SOL price was down more than 12% and exchanged hands at $124.
Now, the recent crypto market downturn has put crypto treasury companies under the microscope. Amid the chaos, data from Lookonchain reveals the significant impact on key players.
Crypto Treasury Companies: Profit & Loss
For context, MicroStrategy (MSTR), led by Michael Saylor, holds 649,870 BTC, currently valued at $54.2 billion.
However, despite the dip in BTC price, the report showed that the firm now sits with an unrealized profit of 12.72% or around $6.15 billion. The company’s average purchase price was $74,433 per BTC.
On the other hand, Bitmine (BMNR) is facing significant losses. The company holds 3,559,879 ETH, worth $9.75 billion, bought at an average price of $4,010.
The double-digit percentage loss in Ethereum results in an unrealized loss of $4.52 billion, down 31.67%, for the firm.
Forward Industries (FWDI) is also witnessing a loss, with 6,834,506 SOL holdings worth $874.8 million, bought at $232.08.
The firm has an unrealized loss of $711 million, down 44.85%, the Lookonchain report showed.
Meanwhile, the market crash has exposed vulnerabilities in crypto treasury companies’ capital structures, with leverage and thin liquidity intensifying the selling pressure.
How are These Crypto Treasury Stocks faring?
In other crypto news, investors are also keeping a close track of the crypto stocks. During writing, MSTR stock price lost nearly 2% in the pre-market session today and traded at $173.9, after closing at $177.13 in the prior session.
The dip could be attributed to the recent decline in Bitcoin price, as well as the broader crypto market crash. Notably, MicroStrategy has lost 15% over the past five sessions and over 40% over the past month.
On the other hand, the Ethereum Treasury firm, BitMine (BMNR) stock rose 1.4% in the pre-market despite the downturn in momentum in the crypto prices.
The BMNR stock traded at $26.39 in the pre-market, after closing the prior session with an 11% loss at $26.02.