Following in Strategy’s footsteps, public companies jumped into the crypto market en masse.
By early 2025, most Digital Assets Treasuries were posting huge gains, and the Strategy’s playbook seemed to be working.
However, towards the end of the third quarter and until now, these companies have incurred huge losses. It is expected that 70% of these DATs will end the year below where they started.
Digital Assets Treasuries shares fall 43%
According to BloombergThe average share of Digital Assets Treasuries listed in the US and Canada has fallen 43% this year.
This decline is driven by companies that are equally tied to Bitcoin and altcoins.
Bitcoin held by DATs has seen a sharp rise since 2024, reaching 1.05 million at the time of writing, as companies have turned to aggressive accumulation.
However, while assets have increased, their value has fallen by more than 27%, from $129 billion to $94 billion.
Source: CoinGlass
This sharp decline comes on the back of a substantial decline in Bitcoin [BTC] price, which has dropped from $126,000 to $91,000.
In fact, DATs have significantly scaled back operations, reducing BTC accumulation. As such, weekly inflows have fallen from a peak of $4.2 billion in June to a low of $8 million.
Source: CoinGlass
Strategy has suffered most from this decline. While Strategy Bitcoin’s holdings have risen to 650,000, the value of its assets has fallen 26% from $79 billion to $58 billion.
At the same time, the company’s shares have fallen 51% in the past year, from a peak of $455 to $178. If As a result, the company’s NAV fell to 0.88.
Source: Marketwatch
In an effort to keep the wheels turning, Strategy turned to Europe in November, where perpetual preferred shares were sold at a discount.
But even the move into Europe has failed, with preference shares falling 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 his previous profits disappear and turn into losses. When Sharplink turned to collect Ethereum [ETH]it increased by more than 2600%.
Since then, however, Sharplink’s share price has fallen more than 86% from its peak, leaving the company worth less than its ETH holdings.
Source: Marketwatch
Currently, Sharplink is trading at just 0.9x its ETH holdings.
Additionally, shares of Bitmine Immersion have been rising on the annual chart, but are down 74% over the past four months. For example, BMNR shares have fallen from $135 in September to $34 at the time of writing.
Source: Marketwatch
Besides ETH, DATs with other altcoins have suffered the most. For example, companies like Greenlane Holdings are down more than 99% YTD.
The company owns $48 million worth of Bera tokens, after the crypto fell more than 90% year-over-year.
The same fate awaits Alt5 Sigma Corp, backed by Donald Trump’s family. The company has set aside more than $1 billion to accumulate WLFI tokens.
However, the promised success did not materialize: the shares fell by 86% from their peak in June.
What does this mean for the broader crypto market?
As for the continued losses that DATs are posting, this simply means that companies will turn to sales to finance their operations.
MSTR has even stated its intention to sell some of its BTC holdings, breaking Saylor’s previous promise to never sell BTC.
If Strategy and other DATs are sold, it will spell trouble for the market. If they are forced to sell, it could push crypto prices down, causing a sharp downward spiral.