Treasury Companies Hit by Losses

The market shock in October caused the value of assets held by Digital Asset Treasury Companies (DATs) to drop sharply, leading to widespread losses.

Although some altcoins have rebounded, the recovery remains insufficient to offset earlier declines, adding more uncertainty to future accumulation strategies. Which DATs are losing money, and how are they reacting? The following analysis provides a clearer picture.

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ETH, SOL, TON, and WLFI Treasuries Suffer Losses in October

The DAT trend was initially driven by the success of models like MicroStrategy (now renamed Strategy) with Bitcoin. However, it has since expanded to altcoins amid expectations of ETF approvals, institutional accumulation, and Bitcoin’s declining dominance.

These companies are using market capitalization to accumulate digital assets, including Bitcoin and altcoins such as ETH, SOL, WLFI, XRP, BNB, and several others.

According to CoinGecko data, as of October, several DATs reported notable losses:

• BitMine Immersion (BMNR): On October 13, the company announced it held 3,032,188 ETH at an average purchase price of $4,154 per ETH. With ETH trading below $4,000 at the time of writing, BMNR faces an unrealized loss of nearly 4%.
• Forward Industries (FORD): This company holds the largest Solana (SOL) treasury, owning 6,822,000 SOL—equivalent to 1.248% of total supply. With an average buy price of $232, FORD’s unrealized losses exceed $245 million, or roughly -15.5%.
• AlphaTON Capital (ATON): The firm accumulated 11.28 million TON, representing 0.448% of total supply, with a total cost of $30 million. The current value of its TON holdings is $24.87 million, implying a loss of $5.13 million.
• ALT5 Sigma (ALTS): The company is also facing a loss of nearly $300 million after accumulating more than $1.3 billion worth of WLFI, which is now valued at only $1 billion.
• Other companies, such as Bit Origin, have incurred about $2 million in losses from their DOGE treasury, while Pineapple Financial reported a $2.7 million loss on its INJ holdings.

Several firms accumulated XRP in July and August. They may also be underwater since XRP’s price is now lower than it was two months ago. However, accurate estimates remain unavailable due to the lack of public disclosure on their average purchase prices and total holdings.

All these losses are unrealized, meaning the DATs can recover if altcoin prices rebound soon. However, the recent market downturn makes such a scenario increasingly uncertain.

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Potential Impacts as DATs Face Losses

When altcoin prices fall below the average acquisition cost, companies may encounter serious financial challenges.

Suppose the market does not recover by year-end. In that case, these companies will be forced to record losses in their quarterly financial statements, reducing profits or pushing them into net losses.

Many DATs also use debt instruments—such as convertible debt or credit facilities—to finance altcoin accumulation. A sharp decline in asset prices could trigger margin calls, forcing sales at depressed prices. These sales create realized losses and drain liquidity.

Moreover, shareholder confidence may erode, leading to a steep drop in stock prices. If share prices approach or fall below the company’s net asset value (NAV), management may be compelled to liquidate altcoin holdings to repay debt or fund share buybacks. Such selling could further depress altcoin prices, creating a downward spiral.

Analyst Joe Carlasare acknowledged that investors in these treasury companies are losing money, calling the DAT model a failed experiment rather than a scam.

As October progresses, the DAT wave appears to be slowing down. Rising macroeconomic concerns and renewed tariff pressures are likely causing more companies to hesitate before joining the trend.