The digital-treasury boom has collapsed — Bloomberg.
A strategy that looked unstoppable only months ago has unraveled at high speed.
🟠 Companies replicated Michael Saylor’s model: raise capital, buy crypto, and let equity valuations grow faster than the underlying asset.
🟠 Early in the year it worked: some stocks surged thousands of percent — SharpLink jumped +2600%, and Alt5 Sigma even brought in Donald Trump's sons as advisors.
🟠 But the structural weakness emerged: tokens don’t generate income, while convertible-debt and preferred-share obligations still need servicing.
🟠 Result: the median drop among digital-asset-treasury (DAT) stocks in the U.S. and Canada hit 43%, with several collapsing by 99%.
🟠 Many companies now trade below the value of their crypto holdings.
🟠 Strategy signaled it may sell Bitcoin to cover dividends — breaking Saylor’s core “never sell” narrative.
Why it matters:
🟠 Large-scale selling by DAT firms could trigger a chain reaction: price pressure → margin calls → further forced liquidations.
🟠 Meanwhile, bigger DAT companies are acquiring smaller firms whose market caps have fallen below asset value.
