A growing number of digital asset treasury companies are moving away from major cryptocurrencies like bitcoin and ether and turning to smaller, less liquid tokens, raising fresh concerns over volatility and investor exposure. Analysts say the shift reflects both the saturation of the bitcoin market and a search for higher returns as sentiment cools among institutional buyers.
According to data from law firm DLA Piper, there are now more than 200 publicly traded digital asset treasuries, or DATs, collectively holding around $150 billion in crypto assets. The number has tripled in the past year as firms followed the model popularized by Michael Saylor’s Strategy and supported by President Donald Trump’s pro-crypto stance. Yet with bitcoin’s price stalling and competition intensifying, several of these companies have begun diversifying into niche tokens such as BERA, NEAR and Canton Coin in hopes of generating stronger short-term gains.
Industry analysts warn that this pivot could amplify systemic risks. “DATs are expanding toward more exotic and less liquid cryptocurrencies, and that’s exactly where the risk could be much higher,” said Cristiano Ventricelli, vice president of digital assets at Moody’s Ratings. “When markets drop, there is more pressure on the equity of these companies.” The concern is that smaller tokens can suffer sharp price swings, which in turn can trigger broader sell-offs among crypto-linked equities.
Much of the recent activity has been financed through private placements or PIPE deals, where shares are sold at a discount to private investors. Between April and November, at least 40 DATs raised more than $15 billion via such deals, only a handful of which focused on bitcoin. Analysts say this rapid expansion has deepened the link between public equity markets and crypto assets, leaving investors exposed to token volatility and shareholder dilution once lock-ups expire.
The pressure was evident in October when U.S.-China tariff tensions rattled markets. BitMine, which holds ether, fell 11%, while Forward Industries, a Solana-focused DAT, lost 15%. Even Strategy, which uses alternative financing methods, dropped nearly 5%. Some companies, including ETHZilla and Forward Industries, have since announced share-repurchase programs to support prices.
Analysts estimate that DAT companies now hold about 4% of all bitcoin, 3.1% of ether, and 0.8% of solana, meaning their collective strategies can influence market trends. Standard Chartered said in a September note that it expects consolidation across the sector. Executives at several DATs say their survival depends on innovation rather than passive token accumulation. “If a DAT just sits back and only buys tokens, long term, you’re going to get absolutely decimated,” said Marius Barnett, chairman of SUI Group.
