Fresh turbulence in the crypto market is putting significant pressure on shares of companies that hold bitcoin and other digital assets on their balance sheets, raising concerns over stress in this fast-growing but still niche sector.
Boosted earlier this year by U.S. President Donald Trump’s crypto-friendly stance—and inspired by the meteoric rise of Michael Saylor’s Strategy (MSTR)—the number of publicly traded firms adopting a Digital Asset Treasury (DAT) model has surged. These companies accumulate cryptocurrencies as long-term corporate assets, betting on future price appreciation.
But sentiment has shifted sharply.
Growing fears of an AI-driven market bubble, coupled with uncertainty over the timing of U.S. Federal Reserve rate cuts, have reduced risk appetite. Bitcoin has fallen to its lowest level since April, dragging down the broader digital asset ecosystem and placing DAT companies under renewed scrutiny.
Widening Discounts to NAV
According to data from The Block, at least 15 bitcoin treasury companies were trading below the net asset value (NAV) of their token holdings as of Friday.
Analysts at Standard Chartered previously warned that DATs—which collectively hold 4% of all bitcoin, 3.1% of all ether, and 0.8% of all solana—could have outsized influence on token prices, especially during periods of market stress. Consolidation across the sector is widely expected.
DAT executives argue that long-term success depends on disciplined treasury management, and many firms are now exploring new revenue streams, including staking, lending, and other yield-generation models.
Performance Snapshot of Key DAT Segments
1. Bitcoin Treasury Companies
Bitcoin-focused DATs remain the largest and most well-known segment.
However, valuations have suffered markedly:
- Strategy (MSTR)—the pioneer of the corporate bitcoin hoarding model—has dropped nearly 36% in November, erasing much of its 2025 rally.
- Dozens of new entrants have saturated the market, intensifying competition and exposing weaker balance sheets.
2. Ether-Focused DATs
As the bitcoin DAT space became crowded, newer players shifted toward ethereum exposure:
- Firms like Bitmine (BMNR) and Sharplink Gaming (SBET) saw their shares initially spike when announcing ether accumulation strategies.
- Prices have since retreated from 2025 highs amid the broader market pullback.
Unlike bitcoin, ether enables staking, allowing companies to:
- Earn yield by validating transactions
- Generate recurring token-based income
- Reduce reliance on pure price appreciation
This makes the ether DAT model potentially more resilient in volatile markets.
3. Solana and Other Altcoin Treasury Models
Some companies have ventured further into altcoins—including solana and Ripple’s XRP—to capture higher potential returns.
Smaller firms have even added more exotic, thin-liquidity tokens, increasing both upside potential and volatility risk.
Notably:
- ALT5 Sigma (ALTS) launched a DAT strategy centered around the Trump-family-linked cryptocurrency World Liberty Financial, highlighting the increasingly experimental nature of some treasury strategies.
Outlook
DAT companies, once seen as high-beta beneficiaries of the 2024–2025 crypto boom, now face a more challenging landscape marked by:
- Rising macro uncertainty
- Waning speculative enthusiasm
- Growing scrutiny over balance-sheet risk
- Increasing divergence between NAV and market value
As digital assets mature, the winners are likely to be firms with robust risk controls, diversified revenue models, and disciplined accumulation strategies, rather than those relying solely on token appreciation.