Shares in companies holding BTC have slumped, marking the first big setback for the crypto treasury trend that swept markets this summer, the Financial Times reports. MicroStrategy — the world’s largest corporate BTC holder — went down 18% in the past month to its lowest since April, dragging peers lower.

Also in hot water: Japanese hotelier-turned-BTC buyer Metaplanet has seen its shares plunge 68% from their June peak, while Smarter Web Company, the UK’s largest BTC holder, is down 70%. Shares of US-listed KindlyMD (-68%) and France’s Capital B (-26%) — both of which pivoted away from their original businesses to stockpile tokens — have also dropped sharply.

What’s driving the decline? The sell-off coincides with BTC itself falling 9% from last month’s record above USD 124k, part of a broader retreat from risk assets. “The hype is dying down . . . [This summer] was the peak for both hype and for the number of companies launching,” said Tyler Evans of UTXO Management. Natixis analyst Eric Benoist warned weaker players will likely be “wiped out” if conditions worsen.

Firms’ strategies were based on raising equity or debt to buy BTC, ETH, and other tokens in hopes of boosting valuations. Some groups have even rebranded with BTC-themed names and colors to ride the wave. But as prices fall, companies risk being valued below the crypto they hold — a “danger zone” that makes fundraising harder, analysts warn.

That is already the case for some. LM Funding America’s enterprise value has fallen to USD 23.5 mn, below the USD 34 mn worth of BTC it holds. Healthcare tech firm Semler Scientific is in a similar position, with an enterprise value of USD 500 mn versus BTC holdings worth USD 557 mn.

Despite the rout, new vehicles are still launching: Forward Industries raised USD 1.7 bn this week to build a SOL treasury, while packaging group Eightco Holdings bought WLD tokens, sending its shares higher. Alt5 Sigma — backed by the Trump family’s crypto venture — has fallen 35% since announcing its own treasury plan last month.

MARKETS THIS MORNING-

Asia-Pacific markets are once again trading in the green this morning, following fresh records in Wall Street yesterday. Japan’s Nikkei, South Korea’s Kospi, Hong Kong’s Hang Seng Index, and China’s CSI 300 are all trading up. Despite a strong close yesterday, Wall Street looks set to open flat later today, with futures on the Dow Jones, S&P 500, and Nasdaq all trading at or near the flatline.

ADX

9,960

+0.3% (YTD: +5.7%)

DFM

5,957

+0.6% (YTD: +15.4%)

Nasdaq Dubai UAE20

4,785

+0.8% (YTD: +14.9%)

USD : AED CBUAE

Buy 3.67

Sell 3.67

EIBOR

4.2% o/n

3.9% 1 yr

TASI

10,453

-0.4% (YTD: -13.3%)

EGX30

34,937

+0.8% (YTD: +17.5%)

S&P 500

6,587.47

+0.9% (YTD: +12.0%)

FTSE 100

9,297.58

+0.8% (YTD: +13.8%)

Euro Stoxx 50

5,386.77

+0.5% (YTD: +10.0%)

Brent crude

USD 65.92

+0.7%

Natural gas (Nymex)

USD 2.92

+1.5%

Gold

USD 3,686.60

+0.4%

BTC

USD 115,540.38

+1.5% (YTD: +22.3%)

Chimera JP Morgan UAE Bond UCITS ETF

AED 3.60

-0.6% (YTD: +3.4%)

S&P MENA Bond & Sukuk

150.36

+0.3% (YTD: +4.1%)

VIX (Volatility Index)

14.71

-4.2% (YTD: -15.2%)

THE CLOSING BELL-

The DFM rose 0.6% yesterday on turnover of AED 510.5 mn. The index is up 15.4% YTD.

In the green: Shuaa Capital (+2.7%), Ekttitab Holding Company (+2.7%) and Emirates NBD (+2.7%).

In the red: Al Mal Capital REIT (-9.3%), BHM Capital Financial Services (-5.0%) and Talabat Holding (-4.9%).

Over on the ADX, the index rose 0.3% on turnover of AED 1.2 bn. Meanwhile, Nasdaq Dubai was up 0.8%.

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