Crypto Treasury Firms Ditch Bitcoin for AI Amid Price Crash

Crypto treasury firms are pivoting to artificial intelligence and data centres as falling crypto prices erode demand for the DAT model. The shift is not yielding the desired results, with several companies experiencing steep share declines.

K Wave Media has fallen about 71% since its May pivot, while Lixte Biotechnology and Alpha Compute have each dropped roughly 33% since announcing their changes.

The Digital Asset Treasury (DAT) model relies on investors valuing the company above its token holdings, creating a premium that allows management to issue shares and buy more assets. However, this structure becomes unsustainable when crypto prices fall or the stock trades near or below net asset value.

K Wave abandoned its Bitcoin plan in May, redirecting up to $485 million from a Bitcoin treasury agreement into data centres, GPU rental operations, and AI acquisitions.