The digital asset treasury (DAT) race is the latest phenomenon in crypto, and it is spreading like wildfire amongst institutions and investors who are eagerly and rapidly acquiring as much crypto as they can.
Despite the market’s $1.7 billion liquidation event, institutions are maintaining their confidence in crypto with huge investments. Though it’s done little to move the needle on the crypto markets.
Major purchases have come from several firms so far this week. On Monday, asset manager Strive purchased DAT and medical tech firm, Semler Scientific. Once merged, Strive’s treasury will hold 10,906 BTC.
Ethereum-focused DAT BitMine also increased its ETH stash to 2.4 million ETH worth over $10 billion, which represents more than 2% of the token’s total supply.
Also today, Fragmetric Labs and DeFi Development Corp. announced that they’d be launching the first Solana DAT in South Korea via the acquisition of an unnamed publicly listed firm in Korea.
Helius Medical Technologies has also joined the competition on Monday with its first acquisition of Solana, of which it now holds over 760,190 SOL worth around $166 million.
It’s becoming a sector of its own. As evidenced by Singapore-headquartered Amber International Holding Limited, which announced its bid to join the race, but instead provides infrastructure solutions for DATs.
Curiously, all this bullish momentum and billions of dollars have resulted in little upside for the crypto markets, which, following the massive liquidations and volatility over the past 48 hours, have found some stability.
However, the upwards momentum that typically follows massive inflows of capital into crypto remains quite subdued.
Although there have been some considerable altcoin rallies, markets, especially in the U.S., are likely waiting to see what the Federal Reserve’s Jerome Powell will say/announce this Wednesday, ahead of crucial inflation data that is due to be published on Friday.
This could sway market momentum one way or the other.
Seemingly, many, including a growing list of digital asset treasuries, are betting on a positive outlook, which arrives just in time for crypto’s best-performing month, October, aka “Uptober”.