As the wind direction quietly changes, the cryptocurrency market is facing a significant storm. Over the past six weeks, the global cryptocurrency market cap has evaporated by approximately $1.2 trillion, a decline of about 25%. Bitcoin peaked at $126,000 in early October, but within just 40 days, it has fallen back below $90,000, giving up almost all of its gains for the year.
In this context, many cryptocurrency treasury companies (DAT) that focus on coin hoarding as their core strategy are under heavy pressure. These companies, once regarded by the market as the "capital engines of the blockchain sector," are now questioned whether they can continue to play the role of stabilizing blood transfusers for the crypto ecosystem on the brink of a bear market.
"DAT" stands for "Digital Asset Treasury," referring to a type of publicly listed company that considers cryptocurrencies (such as Bitcoin, Ethereum, etc.) as the core of its balance sheet. Unlike traditional companies that hold cash or government bonds as their main reserves, DAT companies actively raise funds using equity, convertible bonds, and other capital market tools, investing the raised funds or idle cash into digital assets. They are seen as a new type of corporate paradigm that merges traditional capital markets with crypto assets: they operate as companies while also serving as asset management tools, providing investors with a public, regulated channel that exposes them to the potential upside of crypto assets.
Currently, most treasury companies primarily hold Bitcoin and Ethereum, but some institutions have begun to invest in other emerging high-quality assets, such as Solana, XRP, HYPE, and SUI. Since 2025, the corporate holdings of Bitcoin have doubled. At the same time, Ethereum treasury companies collectively hold about 3.88 million Ether, accounting for approximately 3.21% of the total Ether supply.
In addition to buying coins, these companies may also participate in staking, lending, or other DeFi strategies on-chain to explore cash flow and achieve asset appreciation.
As of September this year, there are at least 200 DAT companies globally, most of which focus on Bitcoin, with a total market cap of about $150 billion, more than tripling from a year ago. As Bitcoin prices have retreated, more companies are turning to hoarding niche and more volatile tokens in hopes of amplifying investment returns. An analysis of announcements from over thirty companies by Reuters shows that this trend is accelerating.
Recent examples include Greenlane, OceanPal, and Tharimmune, which have announced plans to hoard tokens such as BERA, NEAR, and Canton Coin, respectively. This indicates that DAT companies are actively seeking asset diversification, but it also comes with higher investment risks.
Cristiano Ventricelli, Vice President and Senior Analyst of Digital Assets at Moody's, stated, "DAT companies are expanding into smaller, less liquid cryptocurrencies, which is precisely where risks can significantly increase. When the market declines, these companies' equities will also face greater pressure."
Additionally, it is worth noting that many DAT companies raise funds to purchase crypto tokens through private investment in public equity (PIPE), selling shares directly to private investors at a discount. Relevant analysis indicates that between April and November of this year, at least 40 DAT companies raised over $15 billion through PIPE.
However, PIPE financing also brings significant risks. While PIPE can quickly provide cash to companies, it can lead to shareholder dilution, and stock sell-offs after the lock-up period may exacerbate stock price volatility. Especially in a down market, DAT companies that heavily rely on PIPE appear more vulnerable. For instance, on October 10, the market saw a significant decline due to U.S.-China tariff tensions: BitMine, which hoarded Ethereum, saw its stock price drop by over 11%, Forward Industries, which invested in Solana, fell by more than 15%, while Strategy, which raised funds through other means, saw its stock price drop nearly 5%.
As the largest and earliest publicly listed company to engage in crypto asset hoarding, Strategy's movements are closely watched by the market. Its investment strategies in Bitcoin and other digital assets not only affect its own stock performance but may also provide references and indicators for other DAT companies.
Renowned economist Peter Schiff believes that Bitcoin and Strategy may face "huge losses" this week. He pointed out that Strategy's business model relies on income funds purchasing its high-yield preferred shares, but these returns "are very likely to be unfulfilled." Once fund managers identify the risks, they may withdraw their positions, making it difficult for the company to issue additional preferred shares. Schiff warned that this situation could trigger a "death spiral."
According to trader @BullishBritt, Strategy's stock price has now fallen into a significant sell zone for 2024. He stated that the previous sell pressure zone may turn into support as it retraces, attracting new buying. If the support holds, the stock price may experience a short-term rebound, with a chance to rise to around $250 to $280. He believes this is more like a short-term recovery after a prolonged decline, but the overall trend of Strategy and Bitcoin still needs to be observed.
According to a filing submitted to the U.S. Securities and Exchange Commission (SEC) by Strategy on Monday, the company purchased an additional 8,178 Bitcoins between November 10 and 16, totaling approximately $835.6 million. Currently, the total amount of Bitcoin held by the company has reached 649,870, with an average purchase cost of $74,433 per Bitcoin, totaling about $48.4 billion (including fees and related costs).
In the latest news, a $1 billion Ethereum DAT plan led by former Huobi founder Li Lin, Distributed Capital founder Shen Bo, HashKey Group chairman Xiao Feng, and Meitu founder Cai Wensheng has been announced to be shelved, with all raised funds returned to investors. This plan was once regarded as the largest DAT project led by Asian investors.
Industry insiders analyze that the main reason for the project's suspension is related to the bear market following the crash on October 11. Regarding whether the plan will be restarted, informed sources stated that the company will prioritize investor interests, and future actions will depend on market trends. Currently, the overall outlook for the project remains uncertain and requires continued observation of market dynamics.
In summary, DAT companies, once seen as the "infinite ammunition depot" of the crypto market, are now facing multiple challenges such as valuation regression, financing difficulties, and the emergence of structural risks. In the crypto winter, they are no longer merely coin-buying tools but increasingly resemble speculative vehicles harboring risks. Whether they can emerge from this predicament in the future hinges on their ability to establish more diversified and stable business models, rather than relying solely on low-interest financing and coin hoarding strategies.
Related: In the face of the latest crash, some claim Wall Street has "hurt" Bitcoin (BTC) — Saylor disagrees.
Original article: “DAT Companies in a Market Adjustment: Can Their Crypto Hoarding Strategy Support Stock Prices?”
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