Digital asset treasury stocks dropped sharply as the recent crypto rally lost steam, with major names like MicroStrategy, Metaplanet, and key Ethereum-focused firms facing notable losses. Here’s what to know about the latest moves in digital asset markets.
Main Event Details
Digital asset treasury (DAT) firms, often considered high-volatility bets on crypto prices, experienced steep sell-offs on Friday as the August crypto surge began to reverse.
MicroStrategy (MSTR) fell 3% on Friday, extending its pullback to 20% from July’s high and 33% from its November 2024 all-time high. The MSTR/IBIT ratio dropped to a low of 5.43, marking continued underperformance against BlackRock’s iShares Bitcoin Trust (IBIT).
- MicroStrategy: Down 3% Friday, now 33% off November 2024 high
- Metaplanet (3350): Fell 9%
- Nakamoto (NAKA): Dropped 12% after completing its merger with KindlyMD
- KULR Technology (KULR): Gained over 5% on record Q2 revenue and a bitcoin-first balance sheet
Market Response
DATs and crypto-exposed stocks dropped alongside a reversal in major cryptocurrencies:
- Bitcoin: Fell below $117,000 after spiking to a new all-time high of $124,000 just two days earlier
- Ethereum: Slipped under $4,400 after testing its record highs above $4,800
- Bitmine Immersion and SharpLink Gaming (ETH-focused): Down 7% and 14% in early session trading
- Solana-focused: Upexi (UPXI) plunged 9%; DeFi Development (DFDV) lost 5%
Key Stats
- MSTR/IBIT ratio: 5.43, lowest level since March 2025
- KULR Q2 Revenue: Up 63% year-over-year (historic high)
- Riot Platform & Galaxy (GLXY): Each down ~8%
- Coinbase (COIN): Down 1.6%
- Circle (CRCL): Up 3.5% after secondary share offering
Broader Implications
DAT companies follow a playbook first set by MicroStrategy’s Michael Saylor: raising funds through equity and debt to buy and hold crypto, especially bitcoin. While this strategy amplifies upside during a rally, it also leads to bigger drawdowns when the crypto market softens—as shown in the latest reversal. Most crypto-adjacent public stocks mirrored the decline, with only select companies showing resilience due to unique business wins like KULR’s revenue growth.
Conclusion/Outlook
The reversal in bitcoin, Ethereum, and Solana has hit digital asset treasury stocks hard, with major names sliding double digits from their recent highs. While volatility remains elevated, crypto market sentiment can change fast. Investors and traders should monitor both underlying crypto prices and the business moves of DAT firms for early signs of trend reversal or further drawdowns.
Stay updated: Read more about what’s next for BTC momentum and market drivers here.