Significant Decline in Digital Asset Treasuries: Implications for Cryptocurrency

As public companies followed in the footsteps of Strategy, many rushed into the cryptocurrency market. At the beginning of 2025, most Digital Asset Treasuries (DATs) were registering substantial gains, indicating that Strategy's approach was effective. However, as we moved towards the end of Q3 and into Q4, these businesses have reported significant losses, with projections suggesting that 70% of these DATs will finish the year below their starting values.

Key Takeaways

Digital Asset Treasuries (DATs) have seen a 43% decrease in median stock value this year.
Bitcoin holdings have increased, but their overall worth has dropped significantly.
Companies are reducing their accumulation of BTC, leading to a sharp decline in weekly inflows.
Altcoins like Ethereum have also experienced steep losses.
Continued downturns may force DATs to sell assets, negatively impacting the overall cryptocurrency market.

Digital Asset Treasuries plummet 43% this year: What it means for crypto

Digital Asset Treasuries Experience a 43% Drop

According to Bloomberg, the median stock of U.S. and Canadian-listed Digital Asset Treasuries has fallen by 43% this year. This decline is attributed equally to companies associated with Bitcoin and various altcoins.

DATs have increased their Bitcoin holdings sharply since 2024, reaching approximately 1.05 million BTC at the time of this report, as firms aggressively added to their accumulation. Despite this growth in numbers, the overall value has decreased by over 27%, dropping from $129 billion to $94 billion.

BTC DAT holdings

Source: CoinGlass

The significant decrease is primarily a result of Bitcoin’s price decline, which has dropped from $126,000 to around $91,000. Consequently, DATs have significantly reduced their accumulation activities, with weekly inflows decreasing from a high of $4.2 billion in June to just $8 million now.

Strategy holdings

Source: CoinGlass

Among the most affected is Strategy. Although its Bitcoin holdings surged to 650,000 BTC, the asset value plummeted by 26%, from $79 billion to $58 billion. The company’s stock also took a hit, dropping 51% over the past year, from a peak of $455 to $178, which caused its Net Asset Value (NAV) to decline to 0.88.

Strategy stocks

Source: Marketwatch

In an effort to stabilize, Strategy attempted to sell perpetual preferred stocks at discounted rates in Europe in November. Unfortunately, even this move did not succeed, with stocks falling below their initial offering price.

Ethereum and Other Altcoins Suffer Heavily

Not just Bitcoin, but altcoin-related DATs like Ethereum have also seen significant declines. For example, Sharplink Gaming Inc., which once saw its stock skyrocket due to Ethereum accumulation by over 2600%, has now faced a staggering drop of more than 86% from its peak, leaving the company valued lower than its ETH holdings.

Sharplink stocks

Source: Marketwatch

Currently, Sharplink's market trading is only at 0.9 times its ETH value. Likewise, while Bitmine Immersion stocks performed well over the year, they have plummeted 74% in the past four months, with shares falling from $135 in September to just $34 now.

Bitmine stocks

Source: Marketwatch

Other DATs holding various altcoins have also faced severe losses. Greenlane Holdings, for instance, has seen a decline of over 99% year-to-date due to its holding of Bera tokens, which decreased more than 90% annually. Similarly, Alt5 Sigma Corp, which is backed by Donald Trump’s family and invested over $1 billion in WLFI tokens, has seen its shares fall 86% from their June peak as expectations fell short.

Broader Implications for the Cryptocurrency Market

The ongoing losses associated with DATs suggest that these firms may resort to selling their assets to sustain operations. In fact, MSTR has indicated it may sell some of its Bitcoin holdings, contradicting a prior commitment from CEO Michael Saylor to never sell BTC.

If both Strategy and other DATs begin liquidating their assets, it could create significant downward pressure on the broader crypto market. Forced sales may drive prices lower, potentially initiating a damaging downward spiral in cryptocurrency valuations.