What started as one of the most lucrative stock-market strategies of 2025 has rapidly unraveled, wiping out billions in market value and exposing the fragile economics behind the trend.
Dozens of publicly traded companies—dubbed Digital Asset Treasuries (DATs)—spent the past two years transforming themselves into corporate crypto investment vehicles. Their playbook seemed foolproof: convert large portions of corporate cash into Bitcoin or other tokens and watch the stock price surge even more than the value of the crypto itself.
The approach mirrored the strategy pioneered by Michael Saylor, whose company Strategy Inc. became the original publicly traded Bitcoin treasury. More than 100 firms followed his lead throughout early 2025—and for a brief moment, it worked spectacularly.
The Mania: Stocks Soaring Thousands of Percent
At the height of the frenzy, investors piled into any company announcing plans to stockpile crypto. SharpLink Gaming Inc. became one of the most extreme examples, skyrocketing more than 2,600% in days after revealing a dramatic pivot from gaming to buying Ethereum—led by an Ethereum co-founder as chairman.
Influential backers, including Peter Thiel and members of the Trump family, helped fuel what many saw as the next great Wall Street phenomenon.
But the premise behind the boom was flawed: the mere act of holding tokens does not inherently increase their value, nor does it generate any cash flow. Once investors began questioning the logic, the downturn accelerated sharply.
The Crash: Stocks Fall Far Below Their Crypto Holdings
The reversal has been brutal. SharpLink has plunged 86% from its peak, now worth less than the Ether it owns. Greenlane Holdings fell more than 99% despite holding tens of millions in the BERA token.
Bloomberg data shows:
- The median DAT stock is down 43% in 2025
- Bitcoin itself is down only 6%
- Nearly 70% of DATs are on track to end the year below where they started
Companies that bet on smaller altcoins fared far worse than those holding Bitcoin.
High Leverage Made the Downturn Even More Severe
Fueling the boom—and later the crash—was a massive amount of debt.
Strategy Inc. issued waves of convertible bonds and preferred shares to purchase Bitcoin, at one point amassing a stack worth more than $70 billion. Across the entire DAT sector, companies raised more than $45 billion this year to buy crypto, according to B. Riley analyst Fedor Shabalin.
But crypto itself doesn’t generate yield. Now these companies must service interest and dividend payments with no incoming cash, amplifying the financial strain.
Saylor’s “Never Sell Bitcoin” Promise Wavers
For the DAT world, the biggest shock came when Strategy CEO Phong Le acknowledged that the company may need to sell Bitcoin if its market value falls below the value of its holdings.
“We would sell Bitcoin if we needed to fund our dividend payments,” Le said.
This contradicted years of messaging from Saylor, who famously posted:
“Sell a kidney if you must, but keep the Bitcoin.”
News of a potential sale rattled the market. Traders fear even a small liquidation could trigger a broader sell-off by other stressed DATs—and potentially push crypto prices down further.
Strategy has set aside a $1.4 billion reserve fund to avoid forced selling in the short term, though its shares remain down 38% in 2025 despite being up 1,200% since August 2020.
Contagion Risk Grows as Margin Calls Mount
As crypto prices soften, leveraged DAT investors face margin calls, potentially forcing them to sell both stocks and tokens. Many smaller DATs now struggle to raise capital, with investor enthusiasm evaporating.
Some consolidation has already begun:
Strive Inc., co-founded by Vivek Ramaswamy, agreed to acquire Semler Scientific, combining two early Bitcoin treasury firms after Semler’s 65% decline this year.
Legal experts expect more M&A and structured financing as struggling DATs seek ways to survive the downturn.
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