In 2025, the stocks of public treasury companies in the cryptocurrency sector (DATs) from the US and Canada experienced a significant decline in value. According to analysts, the median drop in the shares of these companies was 43%, exceeding the losses of Bitcoin and Ethereum during the same period.
This is reported by Business • Media
Challenges in Capital Raising and Stock Discounts
As volatility in the cryptocurrency market intensified, the business model of DATs began to face difficulties. The value of their stocks compared to the value of crypto assets (mNAV) often falls below one. This complicates not only the attraction of new capital but also the payment of dividends to shareholders.
A striking example is SharpLink Gaming, which switched to the DAT model at the end of May 2025 and became one of the largest corporate holders of Ethereum. Following the strategy change, its shares briefly surged by 2600%, reaching $124.17. However, shortly thereafter, the quotes plummeted, and as of today, the shares are trading at $10.72, representing a decline of over 91% from the local peak.
“The company’s mNAV is at 0.9. This means that its shares are trading at a discount to the value of crypto assets.”
Among other DATs facing similar challenges are smaller companies that have been unable to adapt to the new market conditions.
Market Trends and Prospects for DATs
In comparison, Ethereum decreased by 10% in 2025, while Bitcoin fell by 6%. At the same time, the S&P 500 and Nasdaq 100 stock indices showed increases of 6% and 10%, respectively. The decline in DAT stocks significantly exceeds these figures, raising doubts about their ability to effectively attract investments, which is crucial for the stability of their operations.
According to expert estimates, in 2025, representatives of this sector raised $45 billion through the issuance of debt securities. However, while large DATs like Strategy are currently managing the financial burden, smaller companies are at risk of serious financial problems.
It was previously reported that Sequans, a corporate Bitcoin holder, was forced to sell 970 BTC to pay off debts. Experts warn that further asset sell-offs could trigger a cascading market decline.
Strategy, the largest DAT in the Bitcoin holder segment, has created a reserve fund and publicly stated its intention not to sell assets until 2065 to alleviate investor concerns about potential market destabilization.
Portfolio manager at RIA Advisors, Michael Lebovitz, noted that even a minor asset sale could cause serious pressure on the company, as investors would question the reliability of its business model.
The publication highlights that one way to address the discount and low liquidity issues for DATs could be through mergers and acquisitions. For instance, in September, Strive Inc. agreed to acquire Semler Scientific Inc., which could serve as an example for other market players.
According to Bitwise CIO Matt Hougan, most DATs will trade at a discount, and mergers and acquisitions could increase the volume of crypto assets per share and provide a premium for investors.