Cryptocurrency plunges trigger a chain storm, "Digital Asset National Bond Corporation" collectively "scapegoats" as stock prices plummet.

Once, hoarding cryptocurrencies was a little-known company's "killer move" to boost stock prices. Now, this strategy has become a heavy burden dragging down market capitalization. Data shows that over the past year, the median stock price of so-called "digital asset treasury companies" has plummeted by 62%, far exceeding the drastic adjustment of Bitcoin. This has led to many of these companies seeing their stock prices fall below the net value of their held assets - meaning that shareholders would actually earn more if these companies were liquidated. This is a stark contrast to the glory days of DATs during the frenzy period: back then, a company holding $100 million in Bitcoin could have a market capitalization of $150 million or even $200 million. Even pioneers of this strategy like Michael Saylor's Strategy Inc. (MSTR.US) have seen their stock prices languish as the cryptocurrency craze and prices cool off. Currently, its market capitalization is only a 9% premium over the value of its Bitcoin holdings, far below the over 300% premium level during the peak. "Since 2020, we have witnessed speculative bubbles in meme stocks, tokens, SPACs, and now digital asset treasury companies," remarked RIA Advisors portfolio manager Michael Lebovitz. "Digital asset treasury companies are just another speculative bubble, with the bubble being reflected in the premium, which has now collapsed." According to data, as of 2026, the median return of digital asset treasury companies in the US market has fallen by 20%, while the median return of S&P 500 index components during the same period has risen by 5%. Faced with continued pressure, B. Riley Securities analyst Feodor Shabalin believes DATs no longer attract investors. "This was just a short-term excitement peak, and then investors started to realize that companies must create sources of excess returns to justify the part of the stock price that is above the underlying crypto assets." Since Bitcoin itself does not generate income, DATs companies with weak stock prices and facing debt maturities now have to sell their held cryptocurrencies to generate additional income - something previously unthinkable. Bitcoin treasury company Empery Digital Inc. (EMPD.US) announced on Monday that it had started selling Bitcoin to repurchase its stock at a discount. In December last year, Peter Thiel-backed Ethereum treasury company ETHZilla Corp. also announced the sale of $74.5 million worth of tokens to repay debts. Strategy Inc.'s stock price has fallen by 30% year-to-date. On Wednesday, Canaccord Genuity lowered its target price by 61% due to the decline in Bitcoin prices and narrowing premiums. The company reported a net loss of $1.24 billion in the fourth quarter, mainly due to the shrinking value of Bitcoin. While some DATs companies like Strategy are able to weather the current downturn with strong balance sheets, others have to seek a way out. In 2025, Bitcoin treasury company Strive Inc., co-founded by former Republican presidential candidate Vivek Ramaswamy, agreed to acquire competitor Semler Scientific Inc. DATs companies typically raise funds by issuing debt or securities to purchase cryptocurrencies. Against the backdrop of persistently low coin prices, small companies in this field may face default risks if not acquired by larger enterprises. Despite the swift collapse of DATs companies' prices and premiums, RIA's Lebovitz is not surprised. "If you want to hold Bitcoin, just hold Bitcoin. I think investors are finally starting to realize this fact," he said.