Investors who entered the cryptocurrency market during last year’s boom are now putting pressure on digital asset treasury (DAT) firms. Both retail and institutional shareholders are demanding greater accountability as losses in the sector have reached approximately $50 billion.
Initially, investors purchased shares in these companies with the expectation that their crypto holdings would increase in value. They also believed that the stocks could trade at a premium compared to the value of the cryptocurrencies they held.
However, with the sharp decline in crypto prices and stock values, shareholders are questioning the effectiveness of management in utilizing their funds.
Changes Over the Past Year
Retail investors are becoming more vocal online, while institutional investors are seeking changes through shareholder votes, takeover proposals, and challenges to compensation plans.
It is important to clarify that the $50 billion in cumulative losses mentioned refers to the decrease in the value of publicly traded treasury companies, not the amount shareholders have necessarily lost in a single event.
Artemis highlights that publicly listed DATs primarily focused on Bitcoin and Ethereum have a combined fully diluted market value of around $90 billion, currently 40% below the sector’s previous peak. This figure does not include companies that primarily hold smaller altcoins like Solana.
Downfall of Solana DATs
One example of the scrutiny surrounding crypto treasury firms is Sky AI, formerly known as Sharps Technology, which raised over $400 million to establish a Solana treasury. However, its stock has plummeted by nearly 90% since August 2025.
Another Solana DAT, Forward Industries, attempted to acquire Sky AI and is now opposing its proposed 7.2% equity allocation for employees, valued at approximately $4 million. Shareholders are also questioning the warrants issued by Sky AI, including those given to a strategic advisor valued at $101.3 million.
Success with Bitcoin Strategy
On the other hand, Metaplanet experienced backlash as its stock dropped by 84% from its peak in June 2025. Retail investors criticized its incentive structure and the potential dilution from warrants, leading the company to cancel certain warrants worth around $220 million.
In contrast, Michael Saylor’s Strategy saw a positive turn of events. The largest Bitcoin DAT repurchased $139 million of STRC preferred stock, increasing its Bitcoin holdings to 845,050 BTC, worth $65.83 billion, and $6.4 billion in USD assets, enhancing its liquidity position.
Key Takeaways
- The $50 billion in cumulative losses represent the decline in the value of publicly traded treasury companies.
- Companies not solely focused on Bitcoin and Ethereum also faced significant downturns.