Encryption asset Holdings company (DAT) under pressure, stock prices generally fall: Strategy model faces difficulties.

Digital asset holdings (DAT) companies, which are listed companies that primarily provide indirect exposure to investors by holding crypto assets, are facing severe challenges. As their stock prices experience a big dump and market confidence declines, the vulnerability of this model is becoming increasingly evident. Many recently established or suddenly transformed DAT companies, such as a Japanese nail salon and a cannabis retailer, have performed particularly poorly, raising widespread doubts in the market about the sustainability of this business model.

The speed of Bitcoin purchases has sharply slowed down, highlighting the inherent dilemmas within the model.

(Source: CryptoQuant, Bitcointreasuries.net)

According to Bloomberg, recent data shows that the momentum of the DAT model is weakening. According to CryptoQuant, DAT companies purchased only 14,800 bitcoins in August, a significant drop compared to 66,000 in June. The average purchase amount has also sharply shrunk, falling 86% from the peak in 2025, with only 343 bitcoins purchased last month. Meanwhile, the growth rate of these companies' total bitcoin holdings has plummeted from 163% in March to 8% in August.

Despite the generally bullish macro environment in the market, the stock prices of these companies have fallen sharply. According to financial consulting firm Architect Partners, the average stock price of 15 DAT companies tracked last week dropped by 15%. Specific cases include ALT5 Sigma Corp., which holds WLFI tokens related to Trump, with its stock price falling by about 50% in just over a week; and Kindly MD Inc., a healthcare provider that holds Bitcoin through its subsidiaries, with its stock price dropping by about 80% from its high in May. Even the most well-known DAT companies like Strategy and Metaplanet, which saw significant gains over the past year, have recently experienced a big dump in their stock prices, indicating that even market leaders are not immune to shifts in sentiment.

The Potential Future of Complex Financing Methods and Market Integration

To maintain operations and purchase crypto assets, some DAT companies are turning to more creative and risky financial instruments, such as Bitcoin-backed loans, token-linked convertible bonds, etc. For example, the London web design company Smarter Web Co., which holds Bitcoin, issued a bond linked to the value of Bitcoin. This means that if the price of Bitcoin rises, the company's debt will also increase.

In addition, companies like DDC Enterprise Ltd. have also raised over $1 billion through complex debt and equity issuance channels. However, the stock prices of these companies quickly fell back after a short-term surge.

There are signs that regulators are tightening their scrutiny. It has been reported that Nasdaq has started requiring some companies holding tokens to seek shareholder approval before issuing new shares to fund token purchases.

As market confidence wavers, industry insiders are beginning to discuss potential consolidation. Some viewpoints suggest that as weaker players continue to struggle, stronger companies may target tokens held by their peers for acquisition.

Conclusion

The model of companies holding digital assets is facing severe tests, with its inherent flaws becoming apparent. As Travis Kling, Chief Investment Officer of Ikigai Asset Management, put it, this model feels like "the last struggle of a cycle that has failed to deliver better offerings." The decline in stock prices, the slowdown in Bitcoin accumulation, and complex financing methods all indicate that this trend may be heading towards a turning point. For investors, the inherent risks and costs of these companies are increasingly offsetting the benefits of the indirect investment exposure they provide, compared to directly holding Crypto Assets or through ETFs.