Michael Saylor’s bitcoin stockpiling company, Strategy, has authorized more bitcoin sales, shining a spotlight on the struggles of public crypto hoarding companies. The company’s shares briefly rose after analysts approved a plan that included a share repurchase program and up to $1.25 billion in bitcoin sales.

Crypto Treasury Companies Face Challenges

These companies, known as digital asset treasury companies (DATs), offer investors crypto exposure through regulated public companies. However, their business model is highly sensitive to falling token prices, which can erode the value of their holdings and undermine the leveraged returns that attract investors.

As bitcoin has fallen as much as 33% this year, the fortunes of these companies have also declined. Many DAT companies traded at a premium to their crypto holdings last year, but their aggregate market value relative to the net asset value of their crypto holdings has fallen below 1, meaning they are trading at a discount to their holdings.

DAT executives have said their success will depend on their ability to make smart investing decisions and are looking for new ways to boost shareholder value. Strategy holds the most crypto, even after its bitcoin sales this year, followed by BitMine Immersion Technologies, which hoards ether.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.