Crypto Treasury Companies Are Getting Wrecked in 2025 — Here's How Some Are Surviving

Core Insights - The global crypto market cap has decreased by approximately 27% since its peak on October 10, leading many digital asset treasury (DAT) firms to experience unrealized losses while still raising funds for further purchases [1][2] Group 1: Strategies of Digital Asset Treasury Firms - DAT firms are employing a variety of strategies to protect their balance sheets and remain appealing to investors during a potential prolonged market downturn [2] - Michael Saylor's company, Strategy, has pioneered the DAT concept, transforming it into a Bitcoin powerhouse with assets valued at around $60 billion as of November 27 [3] - Saylor's approach involves capital-structure engineering to hedge against short-term volatility while maximizing long-term gains, raising funds through unsecured debt or new stock issuance [3] Group 2: Performance and Market Response - Strategy has avoided liquidation risks by not selling Bitcoin and has maintained profitability on its investments due to early and lower-priced purchases [4] - Many DAT firms have seen profits turn negative since October, with some opting to sell crypto while others continue to accumulate [7] - Companies that entered the market in 2025 may have purchased at the peak, with notable firms like Bitmine and SharpLink also reporting losses [8] Group 3: Market Sentiment and Stock Performance - DAT stocks have significantly declined amid growing concerns of a market bubble [9] - In response to the bearish market, firms such as ETHZilla and FG Nexus have sold crypto to fund share buybacks and enhance their stock value [10]