Digital asset treasury (DAT) companies—firms that hold significant reserves of cryptocurrencies in their corporate treasuries—are reeling from steep unrealized losses amid the volatility in October. Many of these firms had aggressively accumulated altcoins such as ETH, SOL, TON, and WLFI, banking on continued strength in the crypto markets. But the sharp downturn has exposed vulnerabilities in their models, raising urgent questions about balance sheet resilience, debt exposure, and future strategy.
What was once seen as an innovative extension of the “Bitcoin treasury” model has shifted under pressure: DAT companies holding altcoins now face pronounced mark‑to‑market losses. For example, firms like BitMine Immersion report massive ETH holdings at average cost bases above current prices, leaving them with unrealized losses. Meanwhile, Forward Industries (FORD), which built one of the largest SOL treasuries, is reportedly down by around 15 %, reflecting a painful detour for those who bet heavily on Ethereum’s rival networks.
Other firms are feeling the squeeze too. AlphaTON Capital, which holds TON, is seeing its investment fall short of its acquisition cost. Another, ALTS Sigma, with its sizable WLFI allocations, now faces losses in the hundreds of millions of dollars. Even more conservative treasuries storing XRP, DOGE, or INJ are seeing pressure to some degree, although precise figures are harder to estimate given a lack of disclosure. That said, BNB exposures appear to have bucked the trend, delivering gains amid broad weakness in alt markets.
Risks emerge as ALT‑Heavy treasuries feel the pain
These losses remain largely unrealized—for now. But if the downturn continues, DATs may be compelled to book losses on quarterly financial statements, reducing profitability or even pushing some into net losses. Many of these treasuries are funded via debt, convertible notes, or credit facilities; falling asset prices risk triggering margin calls, forcing asset liquidations at depressed prices. That dynamic can deepen stress, as forced sales beget lower prices, in turn forcing more selling in a vicious cycle.
In addition to internal financial stress, external pressures mount. Investor confidence may erode, particularly if share prices approach or fall below net asset value (NAV). That could prompt management to liquidate crypto holdings to shore up liquidity or satisfy debt obligations. The resulting wave of sell orders could further pressure prices across the altcoin spectrum.
As October continues, the DAT trend appears to be losing steam. Rising macroeconomic concerns, renewed trade tensions, and regulatory uncertainty are making many firms hesitant to double down. What was once viewed as a fast-growing frontier in corporate crypto strategy now looks more like a cautionary tale. The coming weeks will reveal whether these firms can withstand the storm or whether more shakeups lie ahead.
