Crypto has found itself back in the gutter. Bitcoin is currently trading below $70,000, reflecting a decline of approximately 50% from its peaks in October. And the pain is most acute for a new class of public companies that dedicated 2025 to reinventing themselves as crypto hoarders: the so-called digital asset treasuries, or DATs. At the close of 2025, over 200 firms had amassed approximately $150 billion in crypto, creating a distinct mini-industry inspired by Michael Saylor’s strategy. This included the $44 billion market cap bitcoin-buying giant that evolved from a modest software company into a leading advocate for incorporating bitcoin into corporate balance sheets. However, prior to the most recent decline, numerous DATs were already being traded at prices lower than the market value of their cryptocurrency. As tokens experience another downturn, these stocks are plummeting at an even quicker pace than the assets they possess, accumulating paper losses and complicating the strategy of ongoing crypto acquisitions inspired by Saylor. According to data, DATs have experienced a decline of over $20 billion in total. In Q4 2025, Strategy alone faced an operating loss of $17.4 billion, with its stock plummeting nearly 70% in the last six months. BitMine Immersion Technologies, an Ethereum-treasury analogue located in Las Vegas, is currently facing $8.1 billion in unrealized losses, as its stock has plummeted by approximately 66%.
Despite the ability of these companies to maintain their market-to-net-asset-value ratio, which reflects a premium or discount to their underlying crypto holdings, hovering around or just above 1.0, numerous smaller DATs have plummeted to significant discounts. This situation not only complicates efforts to secure new capital but also raises serious doubts about their fundamental purpose. “Many of these ‘treasury firms’ ‘simply didn’t have the strategy,’ but were really opportunistic trades,” says Marius Barnett. In theory, reduced prices create an ideal opportunity to acquire more bitcoin, ether, solana, or any other asset within your strategy, all at a bargain. In reality, many of these companies piled in near the peak, failed to manage their cash prudently, and now lack the flexibility to continue making purchases. This inevitably results in selling pressure. If a significant number of DATs decide to unwind their positions, it’s easy to foresee a further decline in token prices, which could result in additional losses. In a notable development, ETHZilla, an ether treasury located in Palm Beach, has sold a fraction of its $139 million ETH assets to acquire two aircraft engines for $12.2 million. The engines are now leased to a major airline, generating approximately $90,000 per month, as reported by the company. However, CEO McAndrew Rudisill states that the volatility does not concern him. “We’ve been pretty proactive about both staking the ether and managing our exposure, and we’ve always talked about tokenizing real world assets. Our focus was always to get to a point where you’re generating revenue and cash flow using the asset, and that’s where we are now.” ETHZilla is set to tokenize mortgages for modular homes, with Rudisill asserting that default rates are minimal.
Today, numerous DATs appear to be exceptional deals, considering their underlying crypto seems to be trading for as low as 13 cents on the dollar. Furthermore, several prominent players, such as Strategy and Metaplanet, have refrained from using their crypto as collateral to avoid liquidating their treasuries for obligation coverage. As appealing as the discounts might appear, don’t expect them to shrink anytime soon unless there’s a resurgence in crypto prices and DAT momentum picks up again. A wave of consolidation for corporate crypto holders has been widely anticipated by many experts. However, navigating digital asset treasury deals presents significant challenges. “I think it’s really challenging to do M&As, at least right now,” states Christian Lopez. “One, everyone believes they’re undervalued. It’s uncertain whether they are or aren’t. Theoretically, if I’m trading at 0.8 mNAV and you’re trading at 0.9 mNAV, and you acquire me for 0.85 mNAV, that’s technically accretive for both sides. On paper, it appears to make sense. However, this is where you begin to encounter challenges related to shareholders and governance. Numerous speculators trapped in a stock trading at 0.8x mNAV are likely to hesitate in endorsing a deal at 0.85x mNAV, particularly if liquidation brings them nearer to 1.0x. Why offload the company at a reduced price when liquidating the crypto could align you with par value? “This is the trap many DATs are now in,” says Lopez. They’re experiencing declines of 20%, 30%, and in some instances, as much as 70% on the underlying asset, all while facing limited cash reserves. Ultimately, it all circles back to liquidity. While some assets trade in the hundreds of millions of dollars daily, many remain illiquid. Without volume, securing financing at any price becomes a challenging endeavor.
Lopez’s investment bank has been actively engaging with companies and investors to promote convertibles. “One of the things we pitch to some clients is a convertible note that funds today and converts only when they’re trading above 1.0x mNAV,” says Lopez. “That provides the investor with downside protection—let’s say a two- to three-year term, with conversion occurring only above that threshold. It’s technically accretive when it converts, and they utilize that equity. However, investors are showing little interest, and crypto treasury managers are also not engaging. “It’s been challenging to get these done because the bid-ask spread on pricing just can’t get there.” Investors are seeking additional protection and potential for greater returns, while boards and management teams express their need for funding, yet perceive it as too costly, particularly during this downturn in the crypto market. Several DATs seem to be making a complete pivot. ProCap Financial holds a substantial 5,007 bitcoins, currently valued at $343 million, despite having a market cap of just $214 million. In the past year, its shares traded on Nasdaq have plummeted by 75%. Last week, Pompliano revealed that ProCap would be acquiring his other venture, CFO Silvia, a personal finance platform designed to monitor your assets. He presented the merged entity as the “first publicly traded agentic finance firm” with a mission to “help independent investors make money.”
He maintains that the agreement wasn’t influenced by his declining market cap or the significantly reduced crypto prices, highlighting that Silvia was established prior to ProCap, in May 2025, just a month before ProCap revealed its SPAC merger plans to transform into a bitcoin treasury. Considering ProCap Financial’s recent emergence, it’s understandable that Pompliano is eager to embrace the stock market’s newest sensation, agentic AI. For DAT investors, the crucial evaluation during this downturn is whether firms such as ProCap possess a legitimate strategy to leverage their crypto assets or if they are simply traps on the balance sheet. During the ascent of bitcoin, the disparity was of little consequence. At $68,000 and declining, it holds significant importance.