A decision by Michael Saylor’s bitcoin-accumulating company Strategy to approve more bitcoin sales has put renewed scrutiny on a group of publicly traded crypto stockpiling firms that are feeling the pressure of declining cryptocurrency values.
Strategy’s stock got a brief bump on Friday after analysts gave their approval to a plan unveiled late last month. That plan includes a stock buyback program and authorization to sell up to $1.25 billion worth of bitcoin.
The company’s shares had surged in late 2024 and through much of last year, but dropped to two-year lows last month. Strategy has already offloaded roughly $218 million in bitcoin so far this year, using the proceeds to cover dividends and rebuild its cash reserves.
Those sales have reignited debate about the long-term viability of the many copycat companies known as “digital asset treasury” firms, or DATs. These companies exploded in popularity last year, riding a wave of investor enthusiasm tied to U.S. President Trump’s pro-crypto stance.
DATs give investors a way to gain exposure to cryptocurrency through regulated public companies, while also offering the potential for amplified returns. However, the model is extremely vulnerable to falling crypto prices, which can shrink the value of their holdings, make fundraising more difficult, and undermine the leveraged returns that draw investors in.
Bitcoin, the most widely held cryptocurrency, has plunged as much as 33% this year as markets have grappled with geopolitical tensions, rising oil prices, and a reshaping of the Federal Reserve under new chair Kevin Warsh. The fortunes of DAT companies have fallen right along with it.
The combined market value of DAT companies hit its peak last July, when the broader crypto market reached $4 trillion in total value. That was followed by a sharp decline in November after global trade fears triggered a record $19 billion liquidation of crypto positions. These companies have not been able to fully recover in 2026 as the crypto market has remained sluggish.
Many DATs traded at a premium to their actual crypto holdings last year, because investors expected them to use access to equity and debt markets to keep buying more tokens. But starting late last year, the companies’ combined market value relative to the net asset value of their crypto holdings — a measure called mNAV — dropped below 1. That means the companies were trading at a discount to what they actually hold.
This is a significant problem, since most DATs need their shares to trade above their net asset value to attract new capital. Strategy’s own mNAV dipped below 1 for the first time late last month.
Despite the challenges, executives at DAT companies have said their long-term success will depend on making smart investment choices, and they are exploring new ways to increase value for shareholders, according to previous reporting.
Weekly trading volume in DAT shares peaked last August, according to data from blockchain data provider Artemis Terminal, but has been volatile since. Volume hit a low point in February, following a selloff in bitcoin and other cryptocurrencies triggered by news that Warsh would be nominated to lead the Federal Reserve. Analysts expect Warsh to push for reducing the Fed’s balance sheet — a move that would drain liquidity from the financial system and act as a drag on risk assets like cryptocurrencies.
Strategy remains by far the largest holder of crypto among these companies, even after this year’s bitcoin sales. BitMine Immersion Technologies, which holds ether — the second-largest cryptocurrency behind bitcoin — has the next biggest stockpile.
Several other crypto treasury companies have also sold portions of their holdings this year. Nakamoto Inc., which describes itself as a bitcoin operating company, sold roughly 5% of its bitcoin in March and another approximately 600 bitcoin in June.
All companies mentioned in this report either declined to comment or did not respond to requests for comment.
