Digital asset treasury companies face volatility and liquidation

Digital asset treasury (DAT) companies that entered the market during the 2025 bull run have faced significant challenges during subsequent market downturns. According to market reports, a dozen companies that launched Bitcoin treasuries in 2025 have already sold their entire holdings. These sales were primarily driven by the need to repay debt or return cash to investors following declines in stock prices.

Many of these firms followed a strategy of selling shares or issuing debt to accumulate cryptocurrency. However, when the market transitioned from a bull market to a bear market after October 2025, many companies were forced to sell at prices below their original cost basis. For instance, public companies held Bitcoin at an average cost of approximately $80,500 in September 2026.

Alex Odagiu, CEO of BNB Standard, noted that the market has begun differentiating between short-term hype vehicles and companies with long-term mindsets. While some firms suffered heavy losses, those that survived the drawdown are reportedly in stronger positions, particularly those capable of continuing capital raises or utilizing proof-of-stake validation to sustain operations.