{"id":1795,"date":"2025-12-09T01:57:44","date_gmt":"2025-12-09T06:57:44","guid":{"rendered":"https:\/\/www.decentralnetwork.org\/news\/?p=1795"},"modified":"2025-12-09T01:57:48","modified_gmt":"2025-12-09T06:57:48","slug":"crypto-6","status":"publish","type":"post","link":"https:\/\/www.decentralnetwork.org\/news\/crypto-6\/","title":{"rendered":"Digital Asset Treasury Stocks Slide as Crypto Bets Backfire in 2025"},"content":{"rendered":"\n
\"Digital<\/figure>\n\n\n\n

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) <\/a>have seen their share prices plunge by a median of 43% in 2025<\/strong>, reflecting a tough environment for both crypto markets and the businesses tied to them.<\/h2>\n\n\n\n

DATs became a trend thanks to Michael Saylor, who transformed Strategy Inc. into a publicly traded Bitcoin holding giant\u2014an 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.<\/p>\n\n\n\n

But the momentum didn\u2019t last.<\/p>\n\n\n\n

Stock Prices Tumble Across the Sector<\/strong><\/h2>\n\n\n\n

As crypto markets cooled this year, most DAT stocks sank sharply. Bloomberg\u2019s data shows the downturn has hit nearly every company using this strategy, with returns moving in lockstep with falling digital asset prices.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

Many of these companies now look set to finish 2025 below where they started.<\/p>\n\n\n\n

Debt-Fueled Crypto Purchases Turn Risky<\/strong><\/h2>\n\n\n\n

Several firms didn\u2019t just spend their cash reserves\u2014they 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.<\/p>\n\n\n\n

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\u2014an unexpected shift from Saylor\u2019s earlier insistence that the firm would never sell.<\/p>\n\n\n\n

Smaller DATs Struggle the Most<\/strong><\/h2>\n\n\n\n

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.<\/p>\n\n\n\n

Alt5 Sigma Corp.\u2014supported by two of Donald Trump\u2019s sons\u2014bought large amounts of a highly volatile token earlier this year. Its shares surged in June but have since tumbled sharply, according to market data.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

Also Read: Russia\u2019s VTB Bank Plans 2026 Launch for Regulated Spot Crypto Trading<\/a><\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Companies across the U.S. and Canada that poured their corporate cash into cryptocurrencies are taking a beating in the stock … <\/p>\n

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