By cryptoadmin Digital Asset Treasuries (DATs) are staging a strong recovery after facing significant challenges in 2025 linked to discounting pressures. A notable example is Strategy, which recently expanded its $42 billion at-the-market (ATM) equity program, highlighting the company’s role as a leading DAT.
Earlier setbacks arose because the stock prices of public crypto holders often failed to reflect the true value of their digital assets. Now, conditions have shifted, allowing Strategy and other treasury-focused firms to strengthen their market positions and rebuild investor confidence.
DATs adopt significant strategies in their operations to mitigate challenges in the crypto market
A trend of growth characterized digital asset treasuries for most of 2025. At this moment, several firms are actively selling their shares at high prices to buy more cryptocurrency. This approach catalyzed the widespread adoption of similar treasury models among top cryptocurrencies.
Nonetheless, towards the end of last year, data from reliable sources showed that valuations had declined significantly. This situation sparked tension in the crypto industry, as several investors demanded 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 crypto holdings.
Individuals raised concerns about the sustainability of these companies and whether they would meet the index inclusion criteria. Meanwhile, it is worth noting that the main reason for the sudden change in the firms’ funding strategy was the market changes at the time.
This situation forced the DATs to transition from convertible bonds. The decision was crucial for retaining the firms’ standing in benchmark indexes.
Sources have also noted that Forward Industries, a public company that pivoted in 2025 to become the world’s largest corporate holder of Solana (SOL), used debt to finance a share repurchase. These actions were designed to bolster balance sheets and narrow valuation disparities.
The move motivated some Ethereum-centered treasuries to begin generating revenue, while firms such as Bitmine Immersion purchased 65,341 ETH, and Sharplink Gaming began using staking strategies. Some went to the extent of restaking models to maximize returns. On the other hand, Upexi, Inc., a leading Solana treasury company, announced plans to allocate a significant amount of funds to decentralized finance protocols.
This report was made public shortly after Strategy announced a $42 billion at-the-market (ATM) equity program this month. Following this initiative, an 8-K filing noted that the program is divided into $21 billion of Variable Rate Series A Perpetual Stretch Preferred Stock and $21 billion of Class A common stock.
Apart from this significant step, the firm also introduced a new $2.1 billion ATM for its $STRK preferred stock, replacing an earlier $STRK program that had not yet utilized over $20 billion.
Another accomplishment was that Strategy expanded its sales team to include Moelis & Company, A.G.P./Alliance Global Partners, and StoneX Financial, bringing the total number of agents to 19. Notably, these companies act as intermediaries, selling shares gradually over time rather than in large, one-time offerings.
Strategy solidifies its position as a leader in the crypto market
As of March 22, Strategy had unused capacity available under its current ATM programs. This comprised around $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 embraced this expansion as it continued to grow its Bitcoin holdings. To support this claim, reports indicate that Strategy recently purchased an additional 1,031 $BTC for approximately $76.6 million, bringing its total holdings to 762,099 $BTC. Sources with knowledge of the matter anonymously disclosed that the purchases were funded by previous sales of the firm’s Class A common stock.
With this move in place, Strategy’s total Bitcoin acquisitions have reached roughly $57.7 billion, according to recent reports. Even so, analysts argue that current market prices make this position unprofitable, resulting in unrealized losses of over $3.2 billion.
Following this discovery, it is important to note that the ATM programs are critical to the firm’s “42/42” plan, which targets $84 billion in capital raises via equity and convertible notes by 2027 to facilitate additional Bitcoin purchases. While flexible, this approach also brings its own set of challenges.
In a statement, analyst Ivan Wu noted that, “If fully utilized, the $21 billion STRC program would add about $2.4 billion in annual dividend obligations,” further adding that, “When combined with around $1 billion in existing payouts, Strategy’s cash reserves would only cover dividends for about eight months.”