Digital asset treasury (DAT) companies, whose business model relies on accumulating cryptocurrency on their balance sheets, have experienced a significant decline in value. Their market capitalization in the US and Canada has fallen by 43% since the beginning of the year. This sector has collectively lost $80 billion from its October peak of $120 billion, shrinking to $75 billion, largely due to Bitcoin's approximately 50% slump from its October high of over $126,000.
This downturn has forced many DAT companies to reconsider their accumulation strategies. Several firms, including Satsuma Technology (SATS) and Smarter Web Company (SWC), have sold substantial Bitcoin holdings to repay debt, fund operations, or strengthen cash reserves. Satsuma Technology, for instance, liquidated all 668 BTC and is delisting from the London Stock Exchange, returning capital to shareholders. Similarly, Sequans Communications (SQNS) sold over 1,000 BTC and plans to monetize its remaining 658 BTC. Nakamoto (NAKA), which saw its shares fall 99% since its May 2025 SPAC deal, sold 284 BTC for working capital and has 70% of its remaining 5,342 BTC pledged against a Kraken loan.
Even Strategy, the largest publicly listed holder of Bitcoin with over 840,000 BTC, has felt the impact. Its shares have fallen by more than 20% this year and are down over 70% from their summer 2025 peak. Strategy recently sold about 3,620 BTC and authorized additional sales to support its U.S. dollar reserves, booking an $8.3 billion unrealized loss on its digital assets for the second quarter of 2026. CEO Michael Sayler remains bullish, but the company is now prioritizing dollar reserves, holding $4.8 billion as of August 16.
The pressure extends beyond specialist treasury companies. Crypto miners like Bitdeer and MARA Holdings are selling Bitcoin to repurchase debt, repay debt, and reallocate resources to AI data centers. Leadership changes are also occurring, with Jack Mallers stepping down as CEO of Twenty One Capital and Adam Back's Bitcoin Standard Treasury Company (BSTR) failing to merge. Many DATs are attempting to pivot to AI-related ventures, but early results are bleak; for example, Wave Media, which shifted to data centers, has fallen 71%, and Lixte Biotechnology, after merging with a battery company, is down 33%.
