00:00It's not just strategy, right? It feels like a whole host of these crypto treasury companies have really come under pressure in the past couple of months.
00:08Yes. Like you mentioned, the crypto treasury companies, they've seen a lot of pressure on their shares.
00:13And this is because we've seen a big decline in crypto token prices.
00:17You know, Bitcoin is down around 30 percent from its all-time high that it hit earlier this year.
00:23And we've seen similar declines in Ether and some of the other alternative cryptocurrencies.
00:27And for a lot of these businesses where their main focus is now just buying and holding crypto, they're going to move in tandem with those crypto prices.
00:35A lot of them are also leveraged, which means that they see higher gains when the Bitcoin or Ether is going up.
00:42And they also see larger declines when it's going down.
00:44So that's really been pressuring all of these digital asset treasuries and also kind of causing some of the investors to question what is the right time to be buying or selling these stocks.
00:54At least for today, I mean, you can see shares of strategy popping a bit up nearly 7 percent.
01:01I can't say the same for American Bitcoin Corp.
01:04The ticker there is ABTC.
01:06That, of course, was founded by Eric Trump.
01:08You had a story out today about the share move, and it is staggering.
01:12Shares down about 39 percent at the moment.
01:15What's going on there?
01:16Yes.
01:17So American Bitcoin, they're a Bitcoin miner that spun out of Hut 8 Corp.
01:23And this was co-founded, like you mentioned, by Eric Trump.
01:25Donald Trump Jr. is also a shareholder.
01:27And their main focus is just mining Bitcoin.
01:30But the problem is, like I mentioned, that Bitcoin prices have really declined this year.
01:34So for a company where you're getting most of your revenue from either holding Bitcoin or from selling Bitcoin, when the prices go down, that's going to have a big impact.
01:45And we've seen that American Bitcoin has underperformed Bitcoin over the past few months.
01:49And that's what's really weighing on shares.
01:52And they're also a stock that has a large retail investment base as well, which can cause some more of that volatility, too.
01:57Absolutely. And I guess, Monique, I wonder, you know, for these these dApps, these digital asset treasury companies, what's the hope for a catalyst here?
02:07What are people hoping these investors hoping for when it comes to maybe reigniting the enthusiasm and getting these companies perhaps to trade at a premium to their underlying holdings?
02:18So the biggest catalyst is always just going to be token prices.
02:21So if Bitcoin, you know, goes back up to some of those highs we saw earlier, Ether does the same, you know, that's going to be something that's going to give investors more confidence in digital asset treasuries.
02:32But because they're so leveraged, it only is really effective in terms of high returns when there's also large gains in Bitcoin and Ether.
02:41And we've seen that the crypto market sentiment right now is a little more negative than it has been throughout the year.
02:47So that's really giving them some pause, some other potential catalysts and people would like to see for the crypto industry in general as if, you know, there's the crypto market structure bill that is being considered by the U.S. Senate.
02:58If that goes ahead, maybe that will give some more interest into the crypto space, some more enthusiasm.
03:04But for now, it's a lot of just waiting to see what's going to happen with the tokens themselves, because that's the main focus for these businesses.
03:11It's when their crypto goes up, then their stock generally goes up.
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