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VanEck Warns Crypto Treasury Firms Face Challenges as Volatility Declines
VanEck Warns Crypto Treasury Firms Face Challenges as Volatility Declines
23
3
BTCCSquare news:
VanEck analysts highlight a growing concern for digital asset treasuries (DATs) as cryptocurrency market volatility wanes. Firms like BNMR have been underpricing volatility to attract traders and fund crypto purchases, but this strategy may falter amid declining price swings and limited liquidity.
The $135 billion DAT sector, heavily concentrated in MicroStrategy, relies on stock and options sales rather than direct coin purchases to expand crypto holdings. VanEck notes these financial engineering tactics depend on sustained market excitement—a precarious foundation as premiums and mNAVs could evaporate with calmer markets.
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