Digital Asset Treasury (DATs) firms Tron, Bitmine, and Strategy are all down from their mid-2025 highs by double-digit percentages, as analysts claim the hype around crypto treasuries is dwindling. Nasdaq-listed Tron Inc., a toy and souvenir manufacturer that has transitioned into a crypto treasury, has seen its shares collapse by 85% from a June 20 peak of $12.80, according to TradingView data. In September alone, the stock fell 55%, erasing much of the gains that followed its entry into the market. Strategy, the software company now known as the largest Bitcoin holder among publicly traded companies, has also shed about 30% of its value over the last three months. The Ethereum treasury, Bitmine Immersion Technologies, is down 67% over the same period. DATs hype is fading fast, analysts warn According to some market analysts, the decline of these stocks is attributed to a familiar monthly cycle of hype, frenzy, and eventual cooling that new financial products experience during their initial launch. Peter Chung, head of research at Presto Research, said that the surge in valuations came from excitement rather than fundamentals. “It is common for hype and frenzy to take over when a new meta is introduced,” he said in a recent interview. “As cooler heads prevail, the asset tends to find a stable footing, leading to a decline in its valuation. This year it happened with Circle’s IPO, and it is happening with DATs.” Strategy’s Michael Saylor was the first to bring the idea to publicly listed institutions when he began converting the company’s corporate cash into Bitcoin in 2020. Saylor transformed the financial intelligence firm, then known as MicroStrategy, into a proxy for BTC exposure and inspired more businesses that had hoped to replicate its success. Some firms in 2025 executed reverse mergers to quickly list on exchanges, while others broadened exposure to other tokens, including Ethereum, Solana, and Dogecoin. Healthcare company KindlyMD raised $51.5 million through a private share sale and an additional $200 million via convertible notes to fund its bitcoin treasury launch. The company’s enterprise value-to-net asset value ratio dropped from 75 in May to just 0.7 over the past week, according to data from K33 Research. DAT stocks falling due to execution missteps and regulations Some industry watchers believe the treasury strategy has been poorly executed by most companies, who they reckon got into the business blindly. Stephen Gregory, founder of crypto trading platform Vtrader, asserted that many firms rushed to market without a fully sustainable business plan. “The recent drop in crypto treasury companies was a result of bad execution and rushing to the market without fully fleshing out their strategy,” Gregory said. Moreover, the US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority have opened investigations into suspicious stock trades linked to more than 200 companies that announced crypto treasury strategies. Even stocks of firms tied to digital assets, such as Trump Media & Technology Group, which is majority-owned by President Donald Trump, shed 3.8% in September alone. Market saturation shadows US government pro-crypto fueled rally The surge in crypto prices earlier this year, combined with new US accounting rules and favorable regulatory signals from the Trump administration, pushed more companies to launch digital asset treasuries. “The majority of the market can’t hold bitcoin, but they can hold equities,” crypto investor and prominent businessman Kevin O’Leary explained. Data from BitcoinTreasuries.net shows that more than 180 public companies have added bitcoin to their balance sheets so far, holding a combined 4.7% of the total supply. Nearly half of them are considered imitators of Strategy, according to Vetle Lunde, head of research at Norway-based K33. “The performance of some of these stocks earlier this summer was just mind-blowing,” Lunde said. “It’s been just a very wild ride, and now the bitcoin treasury space is getting quite saturated.” If you're reading this, you’re already ahead. Stay there with our newsletter .
