Crypto Treasuries Abandon DAT Model for AI and Data Centers

More than a dozen digital asset treasury companies have abandoned their DAT model in favor of artificial intelligence (AI) and data centers, hoping to win back investor interest. The move comes as falling crypto prices and compressed treasury premiums erode demand for the traditional business model.

K Wave Media shares plummeted 71% after its May pivot, while Lixte Biotechnology and Alpha Compute have each dropped around 33% since announcing their own shifts.

The digital asset treasury (DAT) model relies on public equity, debt, or private placements to buy crypto. However, when investor enthusiasm wanes and crypto prices fall, the premium that lets management issue shares and buy more assets disappears.

Companies like K Wave have redirected funds from Bitcoin treasuries into AI acquisitions and data center investments. However, early results show that markets still want evidence of funding, customers, and execution before rewarding the change.