In 2025, the stocks of public treasury companies known as DATs operating in the US and Canada experienced a significant decline in value. The median drop in the shares of these companies was 43%, surpassing the performance of both Bitcoin (BTC) and Ethereum, as well as major stock market indices.
This is reported by Finway
DATs: Business Model Challenges Amid Market Turmoil
According to analysts, the volatility of the cryptocurrency market negatively impacted the operations of DAT companies, whose business model is based on managing crypto assets. The stock prices of these companies relative to the market value of their crypto portfolio (mNAV) fell below the threshold level of 1, complicating the attraction of additional capital and the payment of dividends to investors.
A notable example is SharpLink Gaming, one of the largest holders of Ethereum. The company shifted its strategy to a DAT model at the end of May 2025, resulting in its stock price soaring by 2600% in a short period. However, at its peak, the price reached $124.17, and subsequently plummeted to $10.72. Thus, the shares lost over 91% from their local maximum. The mNAV for SharpLink Gaming currently stands at 0.9, indicating trading at a discount relative to the company’s asset value.
“In 2025, the median drop in the stocks of public treasury companies, known as DATs, from the US and Canada was 43%, surpassing both Ethereum and Bitcoin, as well as the stock market.”
Financial Risks and Possible Scenarios for DAT Companies
For comparison, in 2025, Ethereum decreased by 10%, while Bitcoin fell by 6%. During the same period, the S&P 500 index rose by 6%, and the Nasdaq 100 increased by 10%. The rising volatility in the cryptocurrency market has cast doubt on the ability of DATs to attract new investments—a key element of their business model.
According to B. Riley Securities analyst Fedor Shabalin, in 2025, these companies managed to raise $45 billion through bond issuance. However, while large DATs like Strategy are currently managing the situation, smaller companies are facing the risk of financial difficulties. In particular, the recent sale of 970 BTC by Sequans to cover debts could lead to cascading sell-offs and further deterioration of the situation.
To stabilize the situation, Strategy, the largest DAT among Bitcoin holders, created a reserve fund and publicly assured that it would not sell assets at least until 2065.
Portfolio manager at RIA Advisors Michael Lebovitz emphasized that even a minor asset sale could negatively impact investor confidence in the company’s business model. One possible solution to overcome the stock discount and reduce risks is through mergers and acquisitions: for instance, Strive Inc. agreed to acquire Semler Scientific Inc. in September. Matt Hougan, CIO of Bitwise, also points to the potential of such deals to enhance the value of DAT companies.