Crypto Treasury Firms Turn to Digital Credit Financing Amid Price Slump

Crypto treasury companies are adapting their business strategies in response to declining crypto asset prices.

The companies have started promoting digital credit financing models, which involve offering investors high-yield perpetual preferred shares and using the funds raised to buy Bitcoin.

According to reports, several companies have already seen significant inflows of around $10.5 billion over the past 10 months since launching this model.

Analysts are concerned about the sustainability of this strategy, as preferred share dividends rely on continuous financing support.