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Reading: DAT Companies Promote Crypto to Save Their Shares: Is This Sustainable? – BeInCrypto
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Asolica > Blog > Crypto > DAT Companies Promote Crypto to Save Their Shares: Is This Sustainable? – BeInCrypto
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DAT Companies Promote Crypto to Save Their Shares: Is This Sustainable? – BeInCrypto

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Last updated: November 21, 2025 1:41 am
Admin
2 weeks ago
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DAT Companies Promote Crypto to Save Their Shares: Is This Sustainable? – BeInCrypto
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Contents
  • Treasury Firms Resort to Asset Gross sales Amid Inventory Collapse
  • Leveraged Buildings Amplify Market Stress
  • Systemic Dangers Mount as Shopping for Halts

FG Nexus offered $32.7 million in Ethereum to fund share buybacks after its inventory fell 94% in 4 months, highlighting the deepening internet asset worth (NAV) disaster amongst digital asset treasury corporations.

The sale follows ETHZilla’s $40 million ETH offload in October, underlining mounting pressures all through a sector managing over $42.7 billion in cryptocurrency belongings. This wave of pressured promoting underscores vulnerabilities within the company crypto treasury mannequin, as corporations wrestle with shares buying and selling under the worth of their underlying asset holdings.

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Treasury Firms Resort to Asset Gross sales Amid Inventory Collapse

FG Nexus disclosed promoting 10,922 ETH in October to assist a $200 million share buyback. The corporate started repurchasing shares after its inventory fell steeply under NAV, a measure of per-share underlying crypto worth. FG Nexus retained 40,005 ETH and $37 million in money, with whole debt rising to $11.9 million, as of Wednesday.

The agency purchased again 3.4 million shares at about $3.45 every, representing 8% of its excellent shares. Administration harassed that shares have been bought at a reduction to NAV, which reached $3.94 per share by mid-November. This technique, nevertheless, required roughly $10 million in debt and a liquidation of 21% of ETH reserves in comparison with September ranges.

FG Nexus Offered $32.7M in $ETH: Treasury Firms Are Beginning to Promote

🔹 FG Nexus offered $32.7M in ETH (10922 ETH)
🔹 Now holds round 40,005 ETH
🔹 Different DAT corporations are additionally decreasing their ETH positions
🔹 $FGNX Inventory down -94% in 4 months

Their inventory can be down 94% within the… pic.twitter.com/A0hXYQaKk3

— Crypto Patel (@CryptoPatel) November 20, 2025

FG Nexus is one in every of a number of digital asset treasury corporations pursuing crypto gross sales. ETHZilla introduced an approximate $40 million ETH sale to facilitate inventory repurchases in late October. The corporate purchased 600,000 shares for practically $12 million since October 24, searching for reduction from a persistent 30% low cost to NAV.

When a DAT firm’s shares commerce at a reduction to the worth of its crypto holdings (mNAV under 1.0), shareholders push administration to appreciate that hidden worth. The best means to do that is thru a inventory buyback, however securing the funds essential to repurchase shares requires money. If the corporate lacks adequate money reserves, it should promote a few of its crypto belongings to finance the buyback.

The mNAV of Metaplanet, a DAT firm that accumulates Bitcoin, dropped to 0.99 earlier than recovering to 1.03. Its shares have misplaced 70% since their June highs, signaling sector-wide stress. The usage of perpetual most popular fairness, which blends fastened dividends with crypto publicity, additional complicates capital buildings already below stress from present market circumstances.

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Leveraged Buildings Amplify Market Stress

DAT corporations deployed $42.7 billion in crypto throughout 2025, with $22.6 billion accrued in Q3 alone. This growth accelerated as Bitcoin rallied above $126,000 in October, fueling optimistic suggestions loops and rising valuations. Nevertheless, subsequent reversals uncovered weaknesses in capital buildings constructed on leverage and capital market entry.

Treasury corporations account for less than 0.83% of whole crypto market capitalization. Their focus of holdings, nevertheless, amplifies their impression throughout downturns. Leverage through convertible notes, PIPE offers, and perpetual most popular fairness will increase promoting stress when costs fall or NAV reductions widen.

Market liquidity deteriorated sharply as asset costs dropped. Bitcoin’s order e-book depth on the 1% band fell from $20 million to $14 million—a 33% lower that heightens value sensitivity to any promoting. Analysts estimate pressured treasury firm gross sales might attain $4 billion to $6 billion if 10% to fifteen% of positions are liquidated, doubtlessly surpassing November’s $2.33 billion in ETF outflows.

Systemic Dangers Mount as Shopping for Halts

Company crypto shopping for has stalled as a result of waning confidence and decreased capital deployment. Firms that when supplied regular demand are actually promoting, reversing earlier optimistic cycles. MicroStrategy’s inventory fell 60% amid Bitcoin volatility, displaying the danger of correlation between crypto costs and fairness values even for corporations with stable stability sheets.

Smaller treasury corporations are below elevated stress, particularly these holding much less liquid belongings. A number of corporations uncovered to Solana skilled 40% NAV drawdowns as concentrated bets deepened losses. Restricted diversification and skinny buying and selling volumes in different cryptocurrencies add to broader sector vulnerabilities.

Oof. BitMine is down $3.7 BILLION on its large $ETH wager.

That is the danger of being a Digital Asset Treasury (DAT) firm!

Query: Will we see extra corporations do that, or is that this a flashing pink warning for company crypto treasuries? $ETH ETFs are looming… pic.twitter.com/emOvzQQQTD

— DrBullZeus (@DrBullZeus) November 20, 2025

Retail buyers additionally contributed to promoting by exiting positions prematurely, decreasing market demand as institutional holders started liquidating. In November, $4 billion in ETF outflows and decreased market-maker exercise intensified volatility. These circumstances resemble leverage-fueled market crashes seen in different asset courses, such because the 2008 mortgage REIT disaster.

This rising disaster challenges the resilience of the digital asset treasury mannequin in extended downturns. Rigorous danger administration and regulatory oversight might be needed to stop self-reinforcing selloffs from destabilizing the broader market. Within the weeks forward, these corporations’ potential to keep up their crypto holdings with out additional pressured liquidation will decide whether or not the sector survives intact or undergoes basic restructuring.

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TAGGED:BeInCryptoCryptoDATFirmsSavesellstocksSustainable
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