Crypto markets rebounded on Tuesday after a volatile start to the month, with digital asset treasury (DAT) firms leading the charge. A period of heavy leverage selling last week caused prices for crypto-linked equities to plummet, but major players holding substantial reserves of prominent tokens saw their shares surge as optimism returned to the market. 2023 started off on a shaky note for the industry, with a correction in early January that triggered a sell-off. However, DAT firms were well-positioned to capitalize on this renewed bullish sentiment, driving market recovery and outperforming major token peers. ,
Ether-focused companies saw particularly significant gains. EthZilla, a Nasdaq-listed Ether reserve vehicle, jumped over 12%, closing near $10.80. BitMine, which manages the world’s largest Ether reserve and has been rumored to be actively accumulating during the recent downturn, also witnessed double-digit gains, with its shares closing at $32.40 after a rise of over 600% since the firm revealed its Ethereum-allocation plan in late June.
Thumzup Media Corp topped the list for overall gains on Tuesday’s market, soaring more than 13% on the Nasdaq.
Alt-Token Treasury Stocks Outpace Major Token Peers:
Several firms centered around holdings of alternative tokens also saw significant outperformance compared to companies solely focused on the largest digital assets. GD Culture Group, which operates virtual content services alongside a well-known memecoin reserve, gained over 11%, while Solana-linked HSDT followed with nearly 10% and Sui Group Holdings added just under 8%. These gains reflect a broader rebound across mid-cap crypto assets, many of which experienced steeper declines than Bitcoin and Ether during last week’s downturn.
Meanwhile, Strategy logged a more modest climb, reaching an intraday peak of $188 before retreating slightly. The company remains down sharply for the year after significant market drawdowns following the mid-October market reversal.
BitMine Purchases Fuel Market Gains:
Market observers suggest that renewed purchases by BitMine may have fueled Tuesday’s strength in Ether-linked equities. On-chain analytics reveal that the firm acquired over 7,000 Ether on Monday and over 18,000 Ether on Tuesday, totaling roughly $75 million. The company has not officially confirmed these acquisitions, but the reported activity aligns with a pattern of accumulation during market dips that has previously bolstered trader confidence.
Ether rebounded to a five-day high of approximately $3,060 early Wednesday, gaining over 9% in the past day. This surge adds further support to treasury-linked equities across the sector.