Digital Asset Treasury Firms Abandon Crypto for AI

Over a dozen digital asset treasury companies have shifted their focus to artificial intelligence and data centers as investor enthusiasm for crypto treasuries wanes.

The DAT model, which relies on public equity, debt, or private placements to buy cryptocurrencies, has been struggling due to falling crypto prices and compressed premiums.

K Wave, a prominent player in the space, saw its shares plummet 71% after pivoting to AI and data centers. Lixte Biotechnology and Alpha Compute also reported significant share declines following their respective shifts.

The transition to AI is aimed at generating revenue through computing contracts, hosting, and power supply, but requires substantial upfront spending and electricity costs.