Digital asset treasuries (DATs) are seeing a strong recovery after facing significant challenges in 2025 linked to discount pressures. A notable example is Strategy, which recently expanded its ATM platform by $42 billion, highlighting the company’s role as a leading DAT player.
Previous setbacks arose because the stock prices of public cryptocurrency holders often failed to reflect the true value of their digital assets. Now, circumstances have changed, allowing Strategy and other treasury-focused firms to consolidate their market positions and rebuild investor confidence.
DATs adopt important strategies in their operations to mitigate the challenges in the cryptocurrency market
A growth trend has characterized digital asset treasuries for most of 2025. At this moment, many companies are actively selling their shares High prices To buy more cryptocurrencies. This approach has spurred widespread adoption of similar treasury models among top cryptocurrencies.
However, at the end of last year, data from reliable sources showed that valuations had declined significantly. This situation has sparked tension in the cryptocurrency industry, with many investors demanding to know the root cause. In an attempt to explain the matter, analysts claimed that the market was valuing many crypto treasury companies at a discount to the market value of their cryptocurrency holdings.
Individuals have raised concerns about the sustainability of these companies and whether they will meet the index inclusion criteria. At the same time, it should be noted that the main reason for the sudden change in corporate financing strategy is the market changes at that time.
This situation forced DATs to switch from convertible bonds. The decision was crucial to maintaining the companies’ position in standard indices.
Sources also indicated that Forward Industries, a public company that in 2025 would turn out to be the world’s largest asset holder Solana (SOL), used debt to finance stock buybacks. These measures are designed to strengthen balance sheets and narrow valuation disparities.
The move prompted some Ethereum-focused Treasuries to start generating revenue, while companies like… Drenching bitumen Bought 65,341 ETH, Sharplink Gaming began using staking strategies. Some have gone so far as to rework models to maximize returns. On the other hand, Upexi, Inc., one of Solana’s leading treasuries, announced plans to allocate a significant amount of funds to DeFi protocols.
This report was published shortly after the strategy announced a $42 billion ATM program this month. Following this initiative, an 8-K filing indicated that the program was divided into $21 billion of Class A variable-rate preferred stock and $21 billion of Class A common stock.
Aside from this important step, the company also introduced a new $2.1 billion ATM for its preferred stock STRK, replacing the previous STRK program that has not yet been used for more than $20 billion.
Another accomplishment is that Strategy has expanded its sales team to include Moelis & Company, AGP/Alliance Global Partners, and StoneX Financial, bringing the total number of agents to 19. Notably, these firms act as brokers, selling stocks gradually over time rather than in large, one-time offerings.
The strategy is solidifying its position as a leader in the cryptocurrency market
As of March 22, Strategy had unused capacity available under its existing air traffic management programs. This consists of approximately $1.62 billion of STRF, $1.98 billion of STRC, $6.24 billion of common stock, and $20.33 billion of STRK approved for issuance.
The company has embraced this expansion as it continues to grow its Bitcoin holdings. To support this claim, reports indicate that the strategy recently purchased an additional 1,031 BTC for approximately $76.6 million, bringing its total holdings to 762,099 BTC. Sources familiar with the matter revealed anonymously that the purchases were funded through previous sales of the company’s Class A common stock.
With the move in place, Strategy’s total Bitcoin acquisitions have reached approximately $57.7 billion, according to recent reports. However, analysts believe that current market prices make this position unprofitable, resulting in unrealized losses of more than $3.2 billion.
Following this revelation, it is important to note that the ATM software is critical to the company’s “42/42” plan, which targets an $84 billion capital raise via stocks and convertible bonds by 2027 to facilitate additional Bitcoin purchases. Although flexible, this approach also brings its own set of challenges.
In a statement, analyst Evan Wu noted that “if fully utilized, the $21 billion STRC program would add about $2.4 billion in annual dividend obligations,” adding that “when combined with about $1 billion in current payments, Strategy’s cash reserves would only cover the dividend for about eight months.”
