Crypto treasury firms struggle as Strategy's bitcoin sales raise fresh doubts
Falling cryptocurrency prices pressure digital asset holding companies, with many now trading below the value of their token reserves
New York: Fresh bitcoin sales by Strategy, the cryptocurrency-focused company led by Michael Saylor, have renewed scrutiny of digital asset treasury companies as falling crypto prices continue to challenge a business model that flourished during last year's market rally.
Strategy recently authorised up to US$1.25 billion in additional bitcoin sales and has already sold about US$218 million worth of bitcoin this year to fund dividends and replenish US dollar reserves.
The move has intensified questions about the long-term viability of so-called digital asset treasury (DAT) companies, which hold large cryptocurrency reserves and offer investors exposure to digital assets through publicly listed companies.
The sector expanded rapidly in 2025, supported by investor optimism surrounding US President Donald Trump's crypto-friendly policies and rising cryptocurrency valuations.
Falling valuations
DAT companies were among the major beneficiaries of the crypto boom, but many have struggled as bitcoin and other digital assets declined sharply in 2026.
Bitcoin has fallen by as much as 33% this year, weighed down by geopolitical tensions, rising oil prices and changing expectations for US monetary policy.
As a result, the market value of many digital asset treasury firms has declined significantly, with the sector failing to recover from a downturn that began late last year.
Trading below asset value
Many DAT companies previously traded at a premium to the value of their cryptocurrency holdings because investors expected them to use equity and debt financing to accumulate additional digital assets.
However, since late 2025, many companies in the sector have traded below the net asset value of their holdings, a key metric known as mNAV.
This development is significant because treasury companies generally rely on a premium valuation to attract new investors and raise capital.
Strategy's own mNAV fell below one for the first time late last month, highlighting growing investor concerns about the sector.
Trading activity slows
Trading activity in DAT shares has also weakened.
According to data from blockchain analytics provider Artemis Terminal, aggregate weekly trading volumes peaked in August 2025 before declining significantly.
Volumes reached their lowest level in February 2026 following renewed pressure on cryptocurrency markets after Kevin Warsh was nominated as Chair of the US Federal Reserve.
Analysts have expressed concerns that tighter monetary conditions and reduced liquidity could create additional headwinds for risk assets, including cryptocurrencies.
Strategy remains largest holder
Despite its recent sales, Strategy remains by far the largest holder of cryptocurrency among publicly traded treasury companies.
The second-largest digital asset stockpile is held by BitMine Immersion Technologies, which focuses on ether, the world's second-largest cryptocurrency by market value.
Several other firms have also reduced their holdings this year. Nakamoto Inc, which describes itself as a bitcoin operating company, sold around 5% of its bitcoin reserves in March and disposed of approximately 600 bitcoin in June.
While executives at several crypto treasury firms continue to argue that active investment management and strategic decision-making will drive future growth, the sector remains under pressure as investors assess whether the model can remain attractive during periods of prolonged weakness in cryptocurrency markets.