Archive · 6 Dec 2025
Crypto's Hottest Trade Collapses After Massive Gains
A lot of companies thought that buying cryptocurrencies like Bitcoin and Ethereum would make their stock prices go up.
For a while, it worked really well, and some companies saw their stock prices skyrocket.
But then, people realized that these crypto holdings didn't actually make the companies any money, and the stock prices started to fall.
Some companies, like SharpLink Gaming, saw their stock prices drop by a huge amount.
Now, these companies are struggling because they have a lot of debt and not enough money coming in.
Some are even thinking about selling their crypto to pay their bills, which could make the prices of those cryptocurrencies go down even more.
It's a big problem, and it might affect other parts of the stock market too.
Public companies that invested heavily in cryptocurrencies, known as digital asset treasuries (DATs), saw their stock prices soar initially but then collapse.
SharpLink Gaming Inc. saw its stock fall 86% from its peak, now worth less than its Ether holdings.
The median stock price of US/Canadian-listed DATs has fallen 43% this year, while Bitcoin is down around 6%.
Strategy Inc., a prominent DAT, is on track for a 38% decline this year despite being up over 1,200% since August 2020.
DATs raised over $45 billion this year to purchase crypto tokens, but now face challenges in making debt payments.
- Who
- Public companies, including SharpLink Gaming Inc., Greenlane Holdings, Strategy Inc., and Alt5 Sigma Corp.
- What
- A collapse in the value of stocks of companies that invested heavily in cryptocurrencies, known as digital asset treasuries (DATs).
- When
- Throughout 2025, with significant declines in the latter half of the year.
- Where
- United States and Canada, with some activity in Europe.
- Why
- Investors realized that these holdings did not generate significant yield, and the volatility of the crypto market led to substantial losses.
- SharpLink Gaming Inc.
- Stock fell 86% from peak, now worth less than its Ether holdings
- Greenlane Holdings
- Plunged more than 99% this year despite $48 million in BERA tokens
- Median stock price of US/Canadian-listed DATs
- Fell 43% this year
- Bitcoin's performance this year
- Down around 6% since the beginning of the year
- Strategy Inc.
- Shares up over 1,200% since August 2020, but on track for a 38% decline this year
- DATs' debt
- Raised over $45 billion this year to purchase crypto tokens
- Strategy Inc.'s crypto holdings
- Worth over $70 billion at one point
- Potential DAT mergers
- Expected to pick up in early 2026, focusing on downside protection