Crypto hoarders dump tokens as shares tumble
14 days ago
- #cryptocurrency
- #stock-market
- #bitcoin
- Crypto-hoarding companies are selling their holdings to support declining share prices.
- MicroStrategy, led by Michael Saylor, has seen its shares drop 50% in three months.
- $77 billion has been wiped from the stock market value of these companies since their peak in July.
- Investors fear the business model relying on rising crypto prices and debt issuance is collapsing.
- Analysts predict a 'fire sale' and a 'vicious cycle' as prices continue to fall.
- MicroStrategy's shift to a 'bitcoin treasury' strategy inspired similar moves in other industries.
- Cryptocurrencies have suffered due to a broader sell-off in speculative assets.
- Metaplanet's shares have dropped 80% since June, while The Smarter Web Company's stock fell 44% this year.