Crypto hoarding company shares under pressure as risk appetite wanes

By Shashwat Chauhan and Hannah Lang

Nov 28 (Reuters) - Fresh turbulence in the crypto market is weighing on shares of companies that stockpile bitcoin and other tokens on their balance sheets, stoking concerns over stress in the niche but fast-growing sector.

Buoyed by U.S. President Donald Trump's crypto-friendly stance and inspired by the meteoric success of Michael Saylor's Strategy MSTR.O, the number of publicly traded companies investing in cryptocurrencies in the hopes they will appreciate has boomed this year.

However, concerns over a potential AI bubble and uncertainty over the path of U.S. Federal Reserve rate cuts have weighed on risk assets lately, pushing bitcoin this month to its lowest level since April and sending many of these "digital asset treasury" or DAT companies wobbling.

At least 15 bitcoin treasury companies were trading below the net asset value of their tokens as of Friday, according to data from crypto publication The Block.

With DATs holding 4% of all bitcoin, 3.1% of all ether and 0.8% of all solana, their fortunes could have major implications for coin prices, Standard Chartered analysts wrote in a September note, adding they expected consolidation in the space.

DAT executives say their success will be rooted in their ability to make smart investing decisions, and many are seeking new ways to generate income.

Here's a look at the performance of some of the most popular and high-profile DATs.

BITCOIN TREASURY

Shares of bitcoin DATs, the most prevalent type, have fallen substantially from their 2025 highs. Michael Saylor's Strategy - which pioneered corporate bitcoin hoarding, spawning dozens of copycats that have saturated the market - has dropped almost 36% in November alone.

ETHER STRATEGY

As the bitcoin DAT sector became overcrowded, new entrants have diversified into other coins including ether ETH=, with firms like Bitmine BMNR.A and Sharplink Gaming SBET.O leading the charge into ether.

Their shares spiked earlier this year when they announced their stockpiling plans, but are now well off their 2025 highs.

Unlike bitcoin DATs, which rely solely on price appreciation, ether can be used in "staking", a process in which ether holders help secure and validate blockchain transactions in return for rewards, often paid in more ether. That means ether DATs have other means for generating and gathering ether tokens.

SOLANA AND OTHER ALTCOINS

Several companies have also broadened their holdings to include "altcoins" such as solana SOL=CCCL and Ripple's XRP XRP=.

Small companies have also started to dip into more thinly traded volatile tokens in a bid to boost their profits, creating more potential volatility risk for their share price.

ALT5 Sigma ALTS.O, for example, is a company that started a DAT strategy hoarding the Trump family's cryptocurrency venture, World Liberty Financial.