Companies that once boosted their stock prices by accumulating cryptocurrencies are now seeing the strategy backfire, dragging down their market value. Data shows that over the past year, the median stock price of so-called digital asset treasury (DAT) firms has plunged 62%, far exceeding the sharp correction in Bitcoin. This has pushed many of these companies' share prices below the net asset value of their crypto holdings—meaning shareholders would receive more if the firms were liquidated. This stands in stark contrast to the peak of the DAT frenzy, when a company holding $100 million in Bitcoin could command a market capitalization of $150 million to $200 million. Even early adopter Michael Saylor’s MicroStrategy Inc. (MSTR.US) has seen its shares slump as crypto enthusiasm and prices cooled. Its current market value is only 9% above the value of its Bitcoin holdings, a far cry from the over 300% premium seen at its peak. "Since 2020, we've witnessed successive speculative bubbles in meme stocks, tokens, and SPACs," noted Michael Lebowitz, portfolio manager at RIA Advisors. "Digital asset treasury companies are just another speculative bubble, reflected in their premium, which has now collapsed." Year-to-date through 2026, the median return for DAT firms listed in the U.S. and Canada has been a decline of 20%, compared to a 5% median gain for S&P 500 constituents. Facing persistent pressure, B. Riley Securities analyst Fyodor Shabalin believes DATs no longer attract investors. "It was a short-lived excitement spike. Investors eventually realized that for a stock to trade above its underlying crypto assets, the company must generate excess returns." Since Bitcoin itself produces no income, DAT firms with weak share prices and looming debt maturities are now forced to sell their cryptocurrency holdings to raise additional funds—a move once considered unthinkable. Bitcoin treasury firm Empery Digital Inc. (EMPD.US) announced on Monday that it has begun selling Bitcoin to buy back its discounted shares. In December, Peter Thiel-backed Ethereum treasury company ETHZilla Corp. also disclosed the sale of $74.5 million in tokens to repay debt. MicroStrategy's stock has fallen 30% year-to-date. On Wednesday, Canaccord Genuity slashed its price target for the company by 61%, citing Bitcoin's price decline and shrinking premium. The firm reported a net loss of $12.4 billion for the fourth quarter on Thursday, largely due to Bitcoin's depreciation. While some DAT companies, like MicroStrategy, have strong enough balance sheets to weather the downturn, others are seeking alternatives. In 2025, Strive Inc., a Bitcoin treasury firm co-founded by former Republican presidential candidate Vivek Ramaswamy, agreed to acquire rival Semler Scientific Inc. DAT firms typically raise capital through debt or equity issuance to buy cryptocurrencies. If smaller players in the sector are not acquired by larger firms, they may face default risks amid prolonged crypto weakness. Although the collapse in DAT premiums has been swift, RIA's Lebowitz is not surprised. "If you want exposure to Bitcoin, just own Bitcoin directly. I think investors are finally realizing that," he said.