Nov 11, 2025
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Bitcoin Treasury Companies Suffer $17 Billion Loss Amid Altcoin Shift
Over the past year, Bitcoin (BTC) and Ethereum (ETH) have been central to Digital Asset Treasuries (DATs), supported by favorable global regulations. However, a shift towards altcoins is emerging.
Shift in Focus for DAT Firms
- As of September, there are over 200 DAT companies focusing on BTC with a market cap of approximately $150 billion, tripling from last year.
- With BTC value declining, firms like Greenlane, OceanPal, and Tharimmune are exploring tokens such as Berachain (BERA), Near protocol (NEAR), and Canton Coin (CC).
- Peter Chung from Presto Research suggests potential for a resurgence despite diminishing hype around DATs.
Retail Investor Losses and Market Challenges
- Earlier this year, digital asset treasury companies traded at a premium due to investor confidence in acquiring more tokens.
- Recent struggles of BTC led to a decline, with at least 15 treasury companies trading below token net asset value.
- Retail investors lost around $17 billion on trades, as per 10x Research estimates.
- Companies like ETHZilla and Forward Industries are resorting to share repurchases to support prices.
Risks and Expert Warnings
- Analysts warn that investing in less liquid cryptocurrencies increases risk.
- Cristiano Ventricelli from Moody’s Ratings highlights heightened equity pressure during adverse market conditions.
- Michael O’Rourke from JonesTrading cautions that many DAT companies might trade at discounts to their digital assets.
