Digital asset treasury (DAT) firms, seen as high-beta plays on crypto prices, sold off sharply on Friday as the August crypto rally showed signs of exhaustion. Strategy (MSTR) fell another 3% on Friday, extending its decline to 20% since July’s high and 33% from the November 2024 all-time high. The MSTR/IBIT ratio dropped to 5.43, its lowest since March, signaling continued underperformance against BlackRock’s iShares Bitcoin Trust (IBIT) and a return to levels last seen at the start of the year. Other bitcoin treasury stocks also declined, with Metaplanet (3350) down 9% and Nakamoto (NAKA) off 12% following the completion of its merger with KindlyMD to form a new bitcoin treasury entity. MSTR/IBIT (TradingView) Breaking from the trend, KULR Technology (KULR) gained over 5% after reporting second quarter revenue growth of 63% year-over-year, the highest in its history, driven by its bitcoin-first balance sheet strategy. Firms with ETH-heavy portfolios suffered steeper losses. Bitmine Immersion Technologies and SharpLink Gaming, the two most prominent Ethereum strategy firms, declined 7% and 14%, respectively, in the early hours of the session. Solana-focused companies weren't spared either. Upexi (UPXI) plunged over 9%, while DeFi Development (DFDV) was 5% lower. BTC, ETH, SOL rally cools The move coincided with bitcoin BTC$116,926.60 sliding below $117,000, extending its reversal from Thursday's short-lived spike to $124,000, a new all-time high. Ether (ETH) tumbled back after challenging its record high above $4,800, now barely holding the $4,400 level.DATs pursue a strategy to raise funds by selling equity and debt to accumulate cryptocurrencies, a playbook pioneered by Michael Saylor's Strategy. They are seen as a high-beta play on crypto prices, rising more when the underlying asset rallies, but suffering bigger drawdowns when the market cools. Most crypto-related stocks also traded lower during the session. Bitcoin miner Riot Platform and digital asset conglomerate Galaxy (GLXY) were lower by roughly 8%. Coinbase (COIN) was modestly down 1.6%, while Circle (CRCL) gained 3.5% following the successful completion of a secondary share offering. Read more: Bitcoin Rally Stalls on U.S. Inflation, Policy Whiplash: Crypto Daybook Americas