Companies across the U.S. and Canada that poured their corporate cash into cryptocurrencies are taking a beating in the stock market this year. According to Bloomberg, firms known as digital asset treasuries (DATs) have seen their share prices plunge by a median of 43% in 2025, reflecting a tough environment for both crypto markets and the businesses tied to them.
DATs became a trend thanks to Michael Saylor, who transformed Strategy Inc. into a publicly traded Bitcoin holding giant—an approach that inspired more than 100 companies to follow suit. The strategy was simple: buy crypto, hold it on the balance sheet, and let rising token prices boost company value. For a while, it worked. Some DAT stocks even surged beyond the value of their crypto holdings, attracting high-profile investors such as Peter Thiel and members of the Trump family.
But the momentum didn’t last.
Stock Prices Tumble Across the Sector
As crypto markets cooled this year, most DAT stocks sank sharply. Bloomberg’s data shows the downturn has hit nearly every company using this strategy, with returns moving in lockstep with falling digital asset prices.
SharpLink Gaming is one example. Its shares soared after announcing a pivot into digital token investing, but the excitement faded, and the stock later dropped far below its peak. Greenlane Holdings also saw its value slide despite holding crypto tokens.
Many of these companies now look set to finish 2025 below where they started.
Debt-Fueled Crypto Purchases Turn Risky
Several firms didn’t just spend their cash reserves—they borrowed heavily to buy tokens. While their crypto holdings generate no cash flow, the debt does generate interest payments. Some firms must also cover dividends, creating financial pressure as their token portfolios continue to shrink.
Strategy Inc. has been hit by the downturn as well. Its stock has fallen since July, and Bloomberg reports the decline may continue. CEO Phong Le even suggested the company could be forced to sell some tokens to cover dividend payments if its market value drops below its asset value—an unexpected shift from Saylor’s earlier insistence that the firm would never sell.
Smaller DATs Struggle the Most
Smaller digital asset treasuries are facing the toughest challenges, especially those that bet on more volatile, less-known tokens. Raising fresh capital has become difficult, and performance has been worse across the board.
Alt5 Sigma Corp.—supported by two of Donald Trump’s sons—bought large amounts of a highly volatile token earlier this year. Its shares surged in June but have since tumbled sharply, according to market data.
With median stock prices down 43% and market sentiment weak, DATs are learning a harsh lesson in 2025: cryptocurrency-led corporate strategies may offer big upside during bull markets, but when the market turns, the fall can be even steeper.
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