Digital asset treasuries (DATs) are showing signs of recovery after a difficult period beginning in late 2025. According to research head Zach Pandl at Grayscale, these firms have regained their footing by optimizing capital structures, generating new income streams, and diversifying their business models. While some companies were forced to sell assets or take loans, overall forced sell-offs were limited, and DATs have been net accumulators of crypto assets in recent weeks.
Digital asset treasuries are navigating the prolonged crypto downturn with varied survival strategies. According to Zach Pandl, head of research at asset manager Grayscale, the sector has crawled out of distress through new approaches. The DATs are finding their footing again. They have pulled this off by optimizing capital structures, generating income, and diversifying business models.
Market leader Strategy pivoted from convertible bonds to preferred stocks, with Stretch (STRC) emerging as a key capital driver. The firm also launched a $2.25 billion USD reserve to cover short-term dividend obligations from its preferred stock line-up. These moves helped reduce its overall debt burden and avoid removal from major benchmark indices.
Companies like SharpLink Gaming and BitMine Immersion Technologies opted to stake and restake holdings for income generation. BitMine, the world’s largest Ethereum treasury firm, is targeting $300 million in annual revenue by staking its entire 4.6 million ETH stash. Other firms, such as Bitcoin miner MARA, sold part of their holdings to bet on AI adoption for diversification.
Not all adjustments were made without burning through holdings. The BTC treasury firm backed by David Bailey, Nakamoto, saw its stock drop nearly to zero. Sequans sold 970 BTC and paid 50% of its convertible debt, slashing the burden from $189 million to $94.5 million. Similarly, ETHZilla liquidated part of its ETH holdings, worth $114 million, for share buybacks, debt payment, and a pivot to tokenization.
Nearly all treasury firms saw their crypto holdings’ value fall below their enterprise value, prompting share buybacks. These were funded either by offloading crypto or taking additional loans, as Metaplanet did by raising a $500 million loan pledged against its BTC holdings. Overall, forced sell-offs were limited, and DATs have been net accumulators in recent weeks.
