Digital Asset Treasuries Face Significant Decline Amid Crypto Market Downturn

The average return of companies holding cryptocurrency, known as Digital Asset Treasuries DAT , has plummeted to -43 due to the ongoing crypto market downturn. While larger corporations have managed to withstand the losses, smaller startups are experiencing more severe financial strain.
According to Bloomberg, which analyzed 138 DATs listed in the U.S. and Canada, the stock price returns for these companies dropped -43 year-to-date YTD . This highlights the disastrous results of following this market trend. Smaller companies that bet on the trend using obscure crypto assets have suffered the most.
For instance, Alt5 Sigma, which raised 1.5 billion to purchase a Trump family-linked token, WLFI, is now down 86 since June. The company was also recently listed as noncompliant by Nasdaq. Sharplink Gaming, another company that invested in ether, soared 2,600 after its crypto pivot but has since fallen over 80 from its peak.
Analysts warn that the negative results of the DAT sector, which once had a market cap of over 100 billion, could impact the broader cryptocurrency market as companies sell off their crypto holdings to stay afloat. Even Strategy, a leading player in the sector, has acknowledged the possibility of selling bitcoin for funding if necessary.
Industry insiders believe this sell-off is already occurring. Rob Hadick, General Partner at Dragonfly, noted that interest in these companies has dwindled and that DATs have been exerting selling pressure on crypto markets since November.
Looking ahead, analysts expect smaller DATs to struggle in enduring the pressure of holding volatile assets, while larger companies like Strategy and Bitmine are likely to maintain and expand their positions in the foreseeable future.