Digital asset companies that relied only on cryptocurrencies, 70% suffered losses… Bitcoin strategy faces 'limitations'

Source: TokenPost Original Title: Digital Asset Firms Relying Solely on Crypto, 70% Suffer Losses…Limits of Bitcoin Strategy Exposed Original Link:

Digital Asset Treasury(DAT: Digital Asset Treasury) companies in the US and Canada are reportedly suffering significant losses in 2025. According to Bloomberg, the median share price of these companies has plunged 43% this year, with no signs of recovery in sight.

The strategy of holding cryptocurrencies like Bitcoin(BTC) and Ethereum(ETH) as corporate assets was originally touted as a ‘growth catalyst.’ A company led by the co-founder of a prominent firm popularized this strategy by making large Bitcoin purchases, and over 100 companies subsequently followed suit. At the time, some companies’ stock prices soared well beyond the value of their underlying assets, attracting high-profile investors.

Sharplink Gaming saw its stock price surge 2,600% immediately after an Ethereum purchase announcement, but has since fallen 86% from its peak and now trades at just 0.9 times its held ETH assets. Greenlane Holdings also saw its market cap evaporate by more than 99%, and despite holding about $48 million worth of BERA tokens, has failed to regain investor trust.

Such poor performance is not limited to isolated cases. Roughly 70% of all DAT companies are expected to end the year at a loss, with little room for rebound. In particular, many of these companies borrowed over $4.5 billion in 2025 alone to purchase cryptocurrencies. The core problem is that most digital assets do not generate dividends or interest income.

An analyst at a securities firm noted, “Market participants have realized that the assets held do not generate cash flow, leading to a re-rating and valuation markdown.”

One company’s stock price has fallen 60% from its July peak and is expected to drop another 38% by year-end. The CEO stated, “If the price of Bitcoin falls below our asset value, we may sell off held BTC to fund dividends,” a stark shift from the earlier stance of “never sell.”

Among smaller DAT firms, one notable example involves a company that bought about $1 billion worth of its self-issued WLFI tokens, but its stock has dropped 86% from its June high.

So far this year, Bitcoin is down 6% and Ethereum 10%, and the negative impact these companies have on the market continues. The strategy of relying solely on crypto assets without cash flow has failed to generate sustainable profits.

Market Interpretation

The devaluation of companies adopting digital assets like Bitcoin as a treasury strategy is now a reality. As the limitations of simply holding assets without generating income become apparent, the market is demanding fundamental business models.

Strategy Points

• Corporate crypto investment strategies are only effective in bull markets
• Valuations will continue to be revised downward in the absence of real revenue models
• Survival rates for small and medium-sized firms focused on high-risk tokens are expected to plummet

Glossary

• Digital Asset Treasury(DAT): A strategy of holding cryptocurrencies like Bitcoin as company assets instead of cash
• BERA/WLFI tokens: Altcoins held or issued by specific companies, with lower liquidity and trust than major coins