Money-Losing Firms Embrace Crypto: The Rise of Digital Asset Treasuries

Money-Losing Companies Embrace Crypto

Several companies with histories of financial losses and struggling stock prices have recently reinvented themselves by pivoting to cryptocurrency. These businesses, once known for niche products like shark-repellant sunscreen or lavender-flavored vodka, are now part of a growing group of publicly traded digital asset treasury companies (DATs). This shift represents a bold attempt to capitalize on the booming crypto market by holding digital currencies on their balance sheets.

The Rise of Digital Asset Treasury Companies

In 2025, over 200 public companies announced plans to become DATs, attracting billions in investments. The move has sparked initial enthusiasm, often boosting stock prices temporarily. Notable figures, such as Eric Trump, have publicly supported this transformation, highlighting its potential to reshape finance. However, the sustainability of this trend remains uncertain, as many companies face prolonged stock declines after early gains, raising questions about long-term profitability and market impact.

Challenges Ahead

While the pivot to crypto offers a fresh start, these companies confront significant challenges, including volatile crypto prices and investor skepticism. Whether this strategy can reverse their fortunes or simply extend financial instability is yet to be determined, making the evolution of these colorful companies a fascinating story to watch.