Crypto Slump Batters Digital Asset Treasuries as Bitcoin Falls Below $70,000

Crypto markets are back under pressure, with Bitcoin trading below $70,000 — roughly 50% down from its October highs. The downturn is hitting a particularly vulnerable group: public companies that reinvented themselves in 2025 as digital asset treasuries, or DATs. These firms adopted a model inspired by Michael Saylor, whose company Strategy became the poster child for holding large amounts of bitcoin on a corporate balance sheet.

By the end of 2025, more than 200 DATs collectively held around $150 billion in crypto assets. The strategy seemed straightforward during the bull run: raise capital, buy bitcoin or other tokens, and benefit from rising prices. But as the market reversed, many of these companies began trading at discounts to the net value of their crypto holdings. With token prices sliding again, their shares are now falling even faster than the assets they own.

Data provider Artemis estimates that DATs have lost more than $20 billion in aggregate value. Strategy alone reported a $17.4 billion operating loss in Q4 2025, and its stock has declined nearly 70% over the past six months. Meanwhile, BitMine Immersion Technologies, an Ethereum-focused treasury firm based in Las Vegas, is sitting on $8.1 billion in unrealized losses, with its shares down about 66%.

Discounts Deepen as Liquidity Tightens

Although some larger players have managed to keep their market-to-net-asset-value ratios near parity, dozens of smaller DATs are trading at steep discounts. This makes raising new capital increasingly difficult and raises fundamental questions about their long-term viability. According to industry executives, many of these companies entered the space opportunistically, without the disciplined treasury management required to survive a prolonged downturn.

In theory, falling crypto prices should present an opportunity to accumulate more assets at a discount. In practice, many DATs bought heavily near market peaks and failed to preserve sufficient liquidity. As a result, they now lack the flexibility to continue purchasing, and in some cases may be forced to sell — adding further pressure to already weak markets.

One notable example is ETHZilla, a Palm Beach-based ether treasury. The company recently sold part of its $139 million ETH holdings to purchase two aircraft engines for $12.2 million, leasing them to a major airline for approximately $90,000 per month. CEO McAndrew Rudisill argues that the strategy reflects a broader vision of generating cash flow from tokenized real-world assets. ETHZilla, previously known as 180 Life Sciences Corp, is also planning to tokenize mortgages tied to modular homes, aiming to create revenue streams beyond simple crypto appreciation.

Consolidation Challenges and Strategic Pivots

Despite deep discounts — in some cases implying that underlying crypto is valued at as little as 13 cents on the dollar — consolidation among DATs remains difficult. Mergers and acquisitions face structural challenges, as companies trading below net asset value struggle to convince shareholders to approve deals that still reflect discounted valuations. Liquidity constraints further complicate matters, especially for firms with thin trading volumes that limit financing options.

Investment banks have proposed convertible debt structures that would convert only if shares trade above net asset value, offering downside protection for investors. Yet in the current environment, boards consider such financing expensive, while investors demand stronger protections — creating a wide bid-ask gap.

Some treasury firms are now pivoting entirely. Anthony Pompliano’s bitcoin treasury company ProCap Financial holds 5,007 bitcoins worth roughly $343 million but has a market capitalization of just $214 million. After its shares fell 75% over the past year, Pompliano announced plans to merge ProCap with his personal finance platform CFO Silvia, positioning the combined company as the first publicly traded “agentic finance” firm focused on helping independent investors manage their assets.

Whether such pivots represent strategic evolution or an attempt to escape balance-sheet constraints remains to be seen. During the bull market, rising token prices masked structural weaknesses. With bitcoin now hovering around $68,000 and trending lower, the sustainability of the digital asset treasury model faces its most serious test yet.