Multiple crypto treasury companies are shifting toward digital credit financing models.

According to the Financial Times, due to weak prices of Bitcoin and other crypto assets, several crypto treasury companies whose core business is holding crypto assets have turned to "Digital Credit" financing after their stock prices declined. Strategy promotes this model, offering investors high-yield perpetual preferred shares and using the funds raised to buy Bitcoin. Since its launch about 10 months ago, it has attracted approximately $10.5 billion in inflows. Strive Asset Management, The Smarter Web Company, and Capital B plan to follow suit, but some analysts are concerned about sustainability since preferred share dividends rely on continuous financing support. Meanwhile, as enthusiasm for the crypto reserve concept has decreased, many companies' stock prices have fallen sharply, with some firms selling crypto assets and returning to their core businesses.