Compass Investments

“Hyperliquid Strategies” has stood out as one of the few treasuries (DAT) with unrealized gains.

miners known for their long-term token holdings are selling off their BTC to fund the move into the artificial intelligence (AI) realm.

Bitmine and Saylor’s Strategy are posting multi-billion dollar losses.

Amidst the wave of negative sentiment hitting crypto markets from all sides and affecting various segments, Hyperliquid Strategies has maintained its position, outperforming firms such as Bitmine and Strategy.

According to analyst agency Artemis, Hyperliquid Strategies has become the leader in unrealized gains in digital assets, earning more than $300 million.

Most other DATs are in the black, suffering from the severe market decline.

Bitmine is the biggest loser, with more than $7.5 billion in unrealized losses, while other companies like Saylor’s Strategy are also showing multi-billion dollar deficits.

Hyperliquid Strategies is an exception in what analysts call the first major test for Treasuries. Its profitability is due to a more flexible approach to the strategic fund concept.

The Hyperliquid model differs from many standard DATs that simply accumulate BTC as a reserve asset because it utilizes the $PURR ecosystem to manage volatility. This active management system has allowed the company to get ahead of the curve by anticipating the liquidity needs of the mining sector and positioning itself accordingly, while BTC and ETH-centric DATs are losing ground as premiums fade.

One of the key factors weighing on many DATs is the changing behavior of BTC miners.

BTC miners used to be the last line of defense; the “walkers” of last resort, holding large amounts of BTC as a sign of long-term confidence. So the sudden change of course, as they dump BTC at a rate not seen in years, raises questions that need answers.

However, experts believe that this is not a loss of faith in BTC as an asset, but evidence of a reorientation to a new, more enticing trend: expansion in the AI sphere.

The growing demand for high-performance computing and data centers is forcing mining giants to divest themselves of inventory in order to fund the massive capital investments needed to move toward AI development.

As of Feb. 27, Singapore-based BTC miner “Bitdeer” reported no BTC reserves, selling a total of 166 BTC and zeroing out. Other companies such as Cango Inc, Riot Platforms

and Terawulf

also realized significant amounts to support their AI-related projects.

Cango Inc. reportedly completed another large transaction in February, selling 4,451 BTC to repay a loan and fund its AI efforts.

Riot Platforms

reportedly did the same last year, selling about $200 million worth of BTC to support AI ambitions, while Terawulf

is also gradually reducing its stakes.

Pressure from the mining community has put a ceiling on BTC prices, and companies that have chosen the strategic fund model have suffered indirectly.

It is unlikely that the selling pressure from miners will abate quickly as they continue to implement to meet AI expansion commitments and investors begin to take note.

the meantime, the rest of the DAT sector is struggling to justify its treasury positions, bogging down in losses in hopes of the next macroeconomic upturn. The fact that Hyperliquid Strategies has been able to stay afloat in the midst of all this is a testament to the success of its approaches.