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Crypto treasury companies shift to fringe tokens, raising volatility concerns

Crypto Companies Shift Focus to Lesser-Known Tokens

Amid declining Bitcoin interest, companies are investing in less popular cryptocurrencies, raising concerns about market volatility and investor risks.

  • Bitcoin's decline shifts focus to fringe tokens
  • DATs raised over $15 billion in private sales
  • Investment in volatile tokens raises anxiety
  • Shareholder dilution linked to PIPE financing
  • Many DATs now trading below asset value
  • Risk of major price impacts on cryptocurrencies

Crypto treasury companies are moving their focus from Bitcoin to lesser-known tokens due to Bitcoin’s declining value. This shift raises concerns about increased volatility in the market.

Shift to Lesser-Known Tokens

As 2025 progresses, over 200 digital asset treasury (DAT) companies now dominate, mostly focusing on Bitcoin. Their combined value has increased significantly in the past year, with many firms turning to riskier tokens to boost profits amid Bitcoin’s weakening.

New companies are entering the market regularly, often penny stocks, hoping to find returns in lesser-known cryptocurrencies. Examples include firms like Greenlane, OceanPal, and Tharimmune, which are investing in tokens like BERA and NEAR.

Potential Investors Risks

The trend of DAT companies investing in volatile cryptocurrencies poses higher risks for investors. Analysts warn that a downturn could heavily affect these companies’ stock and the prices of the tokens they hold.

Historically, many of these companies have funded their token purchases via private placements, raising over $15 billion since April. However, extreme reliance on investor funding makes them vulnerable during market falls.

Financial Stability Concerns

Many DATs previously traded above their crypto holdings but now face declines. Recent data shows at least 15 bitcoin treasury companies trading below their asset values, trickling losses to investors.

Companies like Forward Industries have enacted share repurchases to stabilize share prices during downturns. Executives acknowledge that effective investment strategies are crucial to retain shareholder confidence.

Rachel Patel

Rachel Patel

Senior News Editor

US Business

Rachel Patel is a senior news editor and journalist specializing in political journalism and digital media. With over seven years of professional experience, she is recognized for her accuracy, source verification, and audience-focused reporting approach. Rachel earned her M.S. in Journalism & Media Studies from Stanford University (2018), where she developed expertise in media ethics, political communication, and digital storytelling. Her career has centered on bridging traditional political reporting with the fast-paced world of online journalism. She has contributed to major global media outlets, analyzing how digital platforms — from YouTube and Reddit to TikTok and Bluesky — shape political narratives, influence public opinion, and redefine news consumption. Now based in Berlin, Germany, Rachel serves as a Senior News Editor at Faharas NET, leading coverage on digital politics, media literacy, and social communication trends in the modern information landscape.

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FAQ

What does this shift mean for investors?

Investors face increased risks due to volatility.

How much capital have DATs raised?

DATs raised over $15 billion this year.

What tokens are DATs focusing on?

DATs are investing in various lesser-known cryptocurrencies.