Crypto Treasury Firms Face $50B Losses Amid Investor Backlash

Investors who bought into last year's crypto boom are now turning up the pressure on digital-asset treasury (DAT) firms. Retail and institutional shareholders alike are demanding greater accountability after losses across the sector reached roughly $50 billion.

This is a reversal of expectations, as investors initially bought shares because they expected the companies' crypto holdings to rise in value. They also hoped that the stocks could trade at a premium to the value of the crypto they owned.

However, now that crypto prices and these stocks have fallen sharply, shareholders are questioning whether management is using their money effectively. Retail investors are becoming more vocal online, while institutional investors are pushing for changes through shareholder votes, takeover proposals, and challenges to compensation plans.

The roughly $50 billion in cumulative losses mentioned is actually the decline in the value of these publicly traded treasury companies, not a loss incurred by shareholders in one event. The sector's combined fully diluted market value has fallen 40% below its previous peak, excluding companies that focus on smaller altcoins like Solana.

Sky AI, formerly Sharps Technology, is a key example of the growing scrutiny around crypto treasury firms. After raising more than $400 million to build a Solana treasury, its stock has fallen nearly 90% since August 2025.