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Newsletter: Crypto’s latest “infinite money machine” is the digital asset treasury company — a publicly traded firm that exists primarily to accumulate crypto. For a while, these stocks traded at hefty premiums to the underlying assets. But now, the trade is unraveling.

But with two months of sinking crypto prices, DATCOs are faltering. Some have even begun to sell their crypto to try to rescue plunging stock prices.

This is a scary trend. If crypto prices don’t rebound, DATCOs could be forced to sell their crypto, dragging the market down even further. Galaxy Digital researchers have compared the model, and its potential unwind, to the 1920s investment trust boom and bust.

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Added note: the Trump family is *heavily* connected to DATCOs. In an August newsletter I outlined the 5–6 DATCOs linked to the Trump family. Since then, Trump-linked World Liberty Financial and Fight Fight Fight LLC have also launched treasury strategies, bringing the total to 7–8.