Publicly traded crypto-hoarding companies are emerging as a new source of risk for digital-asset markets after a sharp selloff that has cut Bitcoin prices nearly in half from their October peak above $126,000. These firms, known as digital-asset treasuries (DATs), built their business models on accumulating cryptocurrencies to drive equity premiums, but that strategy is now under strain amid the worst crypto downturn since the FTX collapse. Bitcoin’s slump has already erased nearly $2 trillion from the broader crypto market, and DAT stocks have fared even worse, with median share prices down about 62% over the past year. Some firms have already sold portions of their holdings to repay debt or buy back shares, highlighting vulnerabilities in the model. Analysts say the most exposed DATs are those holding illiquid tokens or lacking sustainable businesses, while companies with operating revenues or equity-funded purchases are better positioned to survive the downturn.
