Bloomberg’s latest data reveals a staggering 43% drop in the median share price of Digital Asset Treasury (DAT) companies listed in the US and Canada this year.
DAT companies typically raise capital by issuing stocks or bonds, then invest those funds in Bitcoin, Ethereum, or other crypto tokens. This model was once highly sought after, seen as a "shortcut" for traditional investors to gain indirect exposure to cryptocurrencies.
01 Crypto Market Winter
The crypto market has faced broad pressure this year, but DAT companies have underperformed their underlying assets by a wide margin. According to Bloomberg’s compiled data, the median share price for these firms has dropped 43%.
By comparison, Bitcoin has declined about 6% since the start of the year. This stark performance gap highlights the inherent fragility of the DAT business model.
Some companies have seen even more dramatic declines. For example, Greenlane Holdings’ share price has plunged over 99% this year, despite still holding approximately $48 million worth of BERA crypto tokens on its balance sheet.
02 Case Studies
Once high-profile cases have now become cautionary tales. Take SharpLink Gaming, an Ethereum-focused treasury company that previously announced it was abandoning its legacy gaming business to pivot aggressively into Ethereum by issuing new shares.
This bold transformation initially sparked a frenzy, with its stock surging more than 2,600% in just a few days. Now, the share price has fallen 86% from its peak, and the company’s market capitalization is even lower than the value of its digital token holdings.
Another notable example is Alt5 Sigma, which gained widespread attention after receiving support from two sons of former US President Trump. However, since its peak in June, its share price has also dropped about 86%.
03 Multiple Challenges
DAT companies face a range of challenges. Simply holding tokens doesn’t generate income, yet these firms must cover interest on debt and pay dividends. When crypto prices fall, this structural mismatch becomes much more pronounced.
Many DAT companies borrowed heavily to acquire crypto assets, and financial leverage has magnified the impact of market volatility. Compared to direct crypto investment, buying DAT company shares actually adds an extra layer of financial risk.
Bloomberg’s analysis shows that the worst performers are often those publicly listed companies that avoided Bitcoin in favor of smaller, more volatile tokens. Companies focused on holding Ethereum or niche tokens have suffered much steeper declines than those primarily invested in Bitcoin.
04 Investors Shift Focus
As DAT company stocks continue to struggle, more investors are reconsidering direct ownership of cryptocurrencies. The growth of custodial services and increased regulatory transparency have made direct digital asset holding safer than ever.
On major global trading platforms like Gate, investors can directly trade leading crypto assets such as Bitcoin and Ethereum, as well as access carefully vetted potential tokens—without taking on the additional operational risk and financial leverage of DAT companies.
Direct asset ownership gives investors full control over their crypto holdings, eliminating reliance on third-party company management and operational decisions. This autonomy is especially valuable in volatile markets.
Notably, Bloomberg’s analysis points out that even among relatively better-performing DAT companies, most investors who bought near peak prices are now underwater, and 70% of company share prices are likely to end the year below their starting levels.
Outlook
Traditional views of the crypto market are being upended. On Gate’s market page, the Bitcoin price holds steady near $90,900, while once-popular DAT company stocks are increasingly facing the dilemma of "market cap below asset value."
As awareness of DAT companies’ structural issues grows, more investors are returning to fundamentals—directly allocating and managing their crypto assets on platforms like Gate, bypassing the risks and costs of intermediaries.
As market exuberance fades, DAT company stocks—once seen as "paper gold"—have revealed their vulnerabilities, while the value-storage properties of crypto assets themselves are proving to be far more resilient amid market volatility.
