Core Insights - The digital asset treasury companies (DATs) are experiencing significant declines, with some down nearly 90% from their highs, raising concerns about their viability and the potential for forced selling [2][3][4]. Market Performance - Bitcoin and Ethereum have seen substantial drops, with Bitcoin down approximately 20% from its all-time high (ATH) in 2025 and Ethereum down 36% from the same peak [6]. - Specific DATs have reported severe losses: Saylor's Strategy is down over 50%, Metaplanet is down close to 80%, and SharpLink has plummeted nearly 90% from its 2025 highs [2][3][6]. Selling Pressure - The selling activity among DATs has raised concerns that other major players may be compelled to sell their holdings to cover costs, as many are trading below the value of their crypto assets [4][7]. - ETHZilla sold about $40 million of ETH, roughly 10% of its treasury, for a share buyback, while Sequans sold about 970 BTC, approximately 30% of its Bitcoin stack, to pay down convertible debt [6]. Market Sentiment - The Crypto Fear & Greed Index indicates a state of extreme fear in the market, reflecting the overall negative sentiment surrounding crypto assets [5]. - Analysts suggest that while DAT stocks are under pressure, stronger Bitcoin-focused treasuries with cleaner balance sheets may be oversold rather than finished [7]. Valuation Metrics - The market net asset value (mNAV) for crypto majors has compressed significantly, trading closer to 80% for most, indicating a lack of market confidence in their valuations [8].