In the past, buying and holding cryptocurrencies long-term was considered a reliable strategy for some companies to achieve substantial gains quickly. However, as Bitcoin has fallen more than 45% from its peak, the stock prices of these companies are now declining alongside digital assets. Shares of Digital Asset Treasury (DAT) companies typically traded at a premium to the value of their underlying crypto holdings. But as token prices have retreated, many DAT stocks are now trading at a discount. On Thursday, Bitcoin dropped below $70,000, reaching its lowest level since October 2024. Concurrently, Ethereum fell to its lowest point since May 2025. "Since 2020, we've witnessed successive waves of bubbles: meme stocks, tokens, SPACs, one after another," said Michael Lebowitz, a portfolio manager at RIA Advisors. "Digital Asset Treasury companies were just one of these speculative bubbles, and the bubble was in the premium. Now that premium has collapsed." Data shows that the median return for DATs listed in the U.S. and Canada is -17% year-to-date. In contrast, the median return for S&P 500 component stocks is a positive 5%. Fedor Shabalin, an analyst at B. Riley Securities, stated that DATs have lost their appeal to investors as pressure mounts. "There was a short period of excitement, after which investors began to realize: for them to buy these stocks, and to justify any premium over the underlying crypto assets, these companies must generate additional returns wherever possible," Shabalin explained. However, Bitcoin does not generate yield. Therefore, DATs with weaker stock prices and approaching debt obligations are forced to sell their crypto assets to create additional income—a move previously considered unthinkable. Empery Digital, a Bitcoin treasury company, announced on Monday that, because its stock trades at a discount, it has begun selling Bitcoin to fund a share repurchase program. In December, ETHZilla, an Ethereum treasury company backed by Peter Thiel, announced it sold $74.5 million worth of tokens to repay debt. Strategy, one of the earliest DATs, saw its stock price trade at a premium of over 100% to its Bitcoin holdings in the past. It now trades at just a 9% premium. The company, founded by Michael Saylor, has seen its stock fall 26% year-to-date. On Wednesday, Canaccord Genuity lowered its price target for the stock by 61%, citing the decline in Bitcoin's price and the shrinking premium. Strategy is scheduled to report its fourth-quarter earnings after the market closes on Thursday and is expected to report billions in losses due to the decreased value of its Bitcoin holdings. While some DATs, like Strategy, possess strong enough balance sheets to withstand the current downturn, others are exploring different options. In 2025, Strive, a Bitcoin treasury company co-founded by former Republican presidential candidate Vivek Ramaswamy, agreed to acquire competitor Semler Scientific. DATs typically fund their crypto purchases by issuing debt or equity. If crypto prices remain depressed, smaller players in the sector risk default unless acquired by larger entities. Although the sharp decline in DAT stock prices and premiums has been rapid, RIA's Lebowitz said he is not surprised by this downturn. "If you want exposure to Bitcoin, just hold Bitcoin directly. I think investors are finally realizing this," he said.