Following in Strategy’s footsteps, public companies jumped into the crypto market in droves.
At the start of 2025, most of Digital Assets Treasuries recorded massive gains, and the Strategy’s playbook seemed to work.
However, towards the end of Q3 and through Q4 so far, these firms have recorded massive losses. 70% of these DATs are projected to close the year below where they started.
Digital Assets Treasuries stocks drop 43%
According to Bloomberg, among U.S. and Canadian-listed Digital Assets Treasuries, the median stock has dropped 43% this year.
This decline is driven by companies tied to Bitcoin and altcoins in equal measure.
Bitcoin held by DATs has seen a sharp increase since 2024, reaching 1.05 million at press time, as firms have turned to aggressive accumulation.
However, while holdings have risen, their value has dropped more than 27%, declining from $129 billion to $94 billion.
Source: CoinGlass
This sharp drop stems from a substantial decline in Bitcoin’s [BTC] price, which has fallen from $126k to hover around $91k.
In fact, DATs have significantly scaled back activities, reducing BTC accumulation. As such, weekly inflows have dropped from June’s peak of $4.2 billion to a low of $8 million.
Source: CoinGlass
With this drop, Strategy has suffered the most. While Strategy Bitcoin holdings have surged to 650k, the value of the assets has dropped 26% from $79 billion to $58 billion.
At the same time, the company’s stock has dropped 51% in the past year, from a peak of $455 to $178. As a result, the firm’s NAV dropped to 0.88.
Source: Marketwatch
In an attempt to keep the wheel spinning, Strategy turned to Europe in November, selling perpetual preferred stocks at a discount.
However, even the move to Europe has failed, with preferred stocks dropping below their offer price.
Altcoins DATs led by Ethereum are bleeding
Not only have Bitcoin DATs declined, but altcoins have suffered even greater losses, including those tied to Ethereum.
For starters, Sharplink Gaming Inc. saw its earlier gains erased and turned to losses. When Sharplink turned to accumulate Ethereum [ETH], it soared by over 2600%.
However, since then, Sharplink’s stock price has dropped by more than 86% from its peak, leaving the firm worth less than its ETH holdings.
Source: Marketwatch
Currently, Sharplink trades only 0.9x its ETH holdings.
Additionally, while Bitmine Immersion stocks have surged on the yearly chart, they are down 74% over the past four months. Thus, BMNR shares have dropped from $135 in September to $34 at press time.
Source: Marketwatch
Besides ETH, DATs holding other altcoins have suffered the most. For instance, firms like Greenlane Holdings plunged more than 99% YTD.
The firm holds $48 million worth of Bera tokens, after the crypto plunged over 90% on yearly charts.
The same fate awaits Alt5 Sigma Corp, backed by Donald Trump’s family. The firm set aside over $1 billion to accumulate WLFI tokens.
However, the promised success failed to materialize, with shares dropping 86% from their June peak.
What does it mean for the broader crypto market?
Concerning the continued losses recorded by DATs, this simply means that firms will turn to selling to fund their operations.
In fact, MSTR has signaled intentions to sell some of its BTC holdings, breaking from Saylor’s earlier promise of never selling BTC.
If Strategy and other DATs sell, it will mean trouble for the market. If they are forced to sell, it could push crypto prices down, causing a sharp downside spiral.