A Bloomberg report reveals a dramatic reversal for U.S. and Canadian companies known as Digital Asset Treasuries (DATs), which hold cryptocurrencies like Bitcoin and Ethereum on their balance sheets. The median stock price for these firms has plunged 43% in 2025, turning what was once a popular market strategy into one of the worst-performing trades.
The strategy, popularized by Michael Saylor's Strategy Inc., saw over a hundred public companies use corporate cash—and often borrowed funds—to buy crypto assets. Initially, share prices soared, sometimes far exceeding the underlying value of the tokens. For example, SharpLink Gaming saw its stock climb over 2,600% after announcing a pivot to buying Ethereum. However, the hype has faded. SharpLink's shares have since fallen 86% from their peak and now trade at roughly 0.9 times the value of its ETH holdings.
Overall, 70% of DATs are projected to end 2025 below their starting values. The downturn is broad, affecting firms tied to both Bitcoin and altcoins. While DATs' collective Bitcoin holdings have grown to 1.05 million BTC, their total value has dropped more than 27%, from $129 billion to $94 billion, reflecting Bitcoin's price decline from around $126k to $91k.
Even the poster child, Strategy, has struggled. Its shares are down 60% from a July peak, with analysts expecting a further 38% decline by year-end. The firm's Net Asset Value (NAV) has dropped to 0.88. In a significant shift from Saylor's earlier "never sell" stance, CEO Phong Le stated the company might sell Bitcoin to fund dividend payments if its market value drops below its holdings' value.
The situation is more severe for DATs holding volatile altcoins. Greenlane Holdings has plunged over 99% year-to-date despite holding around $48 million in BERA tokens, which themselves fell over 90%. Alt5 Sigma Corp., backed by members of the Trump family, allocated over $1 billion to WLFI tokens; its shares are down about 86% from their June peak.
The collective distress raises a major concern for the broader crypto market: forced selling. As these firms face stock declines, debt obligations, and the need to fund operations, they may be compelled to liquidate their crypto holdings. This could create significant selling pressure, potentially pushing cryptocurrency prices into a downward spiral.
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