Crypto Market Decline: Only One DAT Remains in Profit While BTC, ETH, and SOL Struggle

The crypto market faced a significant downturn this past week, erasing nearly $100 billion in global capitalization over a single day, and pushing digital-asset treasury companies (DATs) deep into the red.

Key Takeaways

The crypto market saw a massive drop, losing nearly $100 billion in 24 hours.
Bitcoin, Ethereum, and Solana have all experienced significant declines.
Only a few digital-asset treasuries remain profitable amid the downturn.
Major Bitcoin holders are under pressure, with many initiating buyback programs.
Ethereum corporations report steeper losses, with the top DATs in the red for both weekly and daily timeframes.
Solana and altcoin firms are feeling market stress, but some maintain profitable positions.
There is a risk of forced sell-offs in the DAT sector as prices continue to decline.

Crypto Market Decline: Only One DAT Remains in Profit While BTC, ETH, and SOL Struggle

Bitcoin plunged to around $82,864 after a turbulent trading session, experiencing a drop of up to 10% within 24 hours as market anxiety intensified.

Ethereum traded near $2,683 after hitting a four-month low, while Solana steadied at $124.57, witnessing a 10% decrease in the last 24 hours and a staggering 31% drop in the past 30 days.

The total crypto market capitalization stands at $2.92 trillion. According to CoinGlass data, over 416,000 traders closed their positions in the last 24 hours, with liquidation totaling more than $2.24 billion across the cryptocurrency market.

The market downturn is having a noticeable impact on the operations of major digital asset treasuries (DATs), with only a few remaining in the profit zone.

Bitcoin DATs Show Losses Amid Major Holdings

Despite the overall negative sentiment, some strategies stand out. One firm holds 649,870 BTC with an average acquisition price of $74,433, resulting in unrealized gains of over $6.15 billion, even after Bitcoin’s recent decline.

Many large Bitcoin holders are experiencing increased pressure. Marathon Holdings, which has 53,250 BTC, has seen a 23.7% decline in just three months, while Metaplanet's position of 30,823 BTC is now approximately $774 million below its purchase price.

In response to the discounts on their underlying Bitcoin, several companies are initiating buyback programs. Metaplanet started a $500 million program in late October, Strive approved a $500 million repurchase, and Block has authorized $5 billion in buybacks as of November 19.

Ethereum Treasuries Face Steeper Losses

The losses are even greater for corporations holding significant amounts of Ethereum. Bitmine's treasury includes 3,559,879 ETH valued at $9.75 billion, leading to an unrealized loss of $4.52 billion (-31.67%).

SharpLink's treasury, valued at $2.33 billion, has dropped by 27.4% over three months, leaving a loss of $773.9 million (-24.9%) on its holdings of 859,853 ETH. Additionally, Bit Digital, maintaining a treasury worth $416.7 million, recorded a 24.7% decline, with a loss of $51.4 million (-11%).

To bolster their financial positions, ETHZilla sold $40 million in ETH for a $250 million buyback initiative. Data from Capriole Investments indicates that these companies have seen negative returns ranging from 25% to 48% on their ETH assets, with the top 10 DATs showing losses in both weekly and daily timeframes.

Solana and Other Altcoin DATs Experience Market Stress

Firms focused on Solana show a mixed picture. Forward Industries, which holds 6.83 million SOL at an average cost per SOL of $232, faces a 44.8% loss, while Upexi sustains a 17% decline.

Conversely, DeFi Development Corp. remains in the profit zone, with 2.19 million SOL valued at $275.23 million, providing a 16.3% unrealized return.

In light of declining stock prices, Solana treasuries have also initiated buyback programs. Forward Industries approved a plan for $1 billion on November 3, and Upexi authorized a $50 million share repurchase program on November 13.

Other treasury books are also under pressure. Galaxy Digital has accumulated $660.7 million in unrealized losses, with $561.5 million stemming from its Bitcoin holdings. CEA Industries is down 4.7% on BNB, while Nano Labs is enjoying a 104% increase.

The mNAV ratios across the sector have slipped below 1, indicating that several DATs are trading at a slight discount to their actual asset values.

DATs at a Pivotal Moment: More Liquidations or a Path to Recovery?

Market analysts and traders are warning that treasury companies may be forced to sell assets. Several DATs have already begun liquidating their holdings, with FG Nexus recently selling off 21% of its ETH, while Nakamoto sold 367 BTC.

Experts highlight a growing risk that companies holding crypto at prices significantly higher than current levels may need to sell to raise capital and stabilize their share prices.

The sell-off has been intensified by macroeconomic pressures as large funds have shifted their investments into gold, healthcare, and defensive equities, favoring lower-risk assets as the year comes to a close.

Moreover, U.S. investors have consistently been net sellers of Bitcoin throughout November, with ETF flows declining for three consecutive weeks. The Coinbase Premium Gap even briefly dipped to -$90, signaling significant selling pressure domestically.

For DATs, the future trajectory lies in whether the downturn extends further. Continued declines may lead to increased corporate selling, especially among firms whose stock prices are trading below the value of their crypto holdings.

However, rapid rebounds may inspire new investments in treasury accumulation, potentially repeating the cycle that previously contributed to the sector's growth earlier this year.