Crypto Treasury Stocks Go Wild as the Strategy Model Faces Scrutiny

TradingKey - Amid a friendlier regulatory environment, an increasing number of public companies are following MicroStrategy (MSTR) in adding cryptocurrencies to their balance sheets. These so-called Digital Asset Treasury companies (DATs) often see their stock prices surge when announcing investments in Bitcoin, Ethereum, or other major digital assets. However, rising competition and lack of strategic differentiation are raising questions about the sustainability of this trend.

Since the start of 2025, over 100 publicly listed companies have announced plans to include Bitcoin, Ethereum, and other mainstream cryptocurrencies in their treasury reserves. 

Most are small-cap firms — including nail salon chains, cannabis retailers, and packaging companies — seeking to capture investor attention through this rare market opportunity.

While Bitcoin has trended downward since mid-August, corporate appetite for crypto treasury strategies has not cooled.

On Monday, September 8, e-commerce inventory platform Eightco Holdings saw its stock surge 3,008% in a single day after announcing a plan to buy Worldcoin (WLD), a cryptocurrency linked to OpenAI. 

On Tuesday, digital media ad firm QMMM Holdings jumped 1,737% after revealing plans to establish a diversified crypto treasury to purchase Bitcoin and other assets.

However, such market frenzies are short-lived. As of writing, Eightco was down 8% in pre-market trading on Wednesday, while QMMM had fallen about 60%. Additionally, ALT5 Sigma, which holds WLFI tokens, has halved in value in just one week. Kindly MD, a healthcare company holding Bitcoin, is down 80% from its May peak.

In fact, even MicroStrategy, the pioneer of the “buy and hold Bitcoin” strategy, has seen its stock fall about 26% from its 2025 high, while the S&P 500 and Nasdaq have hit new all-time highs this week. Japan’s Metaplanet has also dropped around 30% in the past month.

Parataxis Capital said that there are way too many of them and very little differentiation in the US.

Bloomberg reported that while the crypto strategy can provide potential upside leverage for some firms, the trade is becoming increasingly crowded.

“Too many companies have rushed in, offering little beyond the tokens they hold, and as prices slide, the confidence that sustained those premiums is beginning to fray.”

Moreover, the strategy itself is losing internal momentum — especially in terms of Bitcoin buying pace.

CryptoQuant data shows that digital asset treasury firms purchased only 14,800 BTC in August, a sharp drop from 66,000 BTC in June. The average monthly purchase volume has also plummeted 86% from its 2025 peak.