Over the past year, dozens of public companies have followed a single playbook: raise capital, buy crypto in bulk, and place those assets at the core of their balance sheets. This model - known as a digital asset treasury or DAT - was popularized by giants like Strategy and widely copied by companies accumulating Ethereum, Solana, and even smaller tokens. As long as prices were rising, the strategy looked brilliant.
Then the market turned. With crypto prices sinking toward 2026 lows, most of these “crypto vaults” are now trapped in positions built when prices were much higher. According to data shared by Cointelegraph, out of the numerous existing DATs, only Hyperion and Hyperliquid are currently recorded holding paper gains, or positive unrealized PnL. The rest are in the red.
Why They Ended Up Underwater
The issue comes down to timing. The wave of companies rushing to become DATs mostly entered when sentiment was scorching and prices were at elevated levels. Once the market cooled and entered a prolonged consolidation phase, the value of the accumulated assets dropped - and because crypto represents a major portion of their balance sheets, those paper losses directly weighed on company valuations.
That Hyperliquid managed to stay in the green is no accident. Its ecosystem has been among the most talked-about this year, providing its treasury position with a cushion most competitors lack. Yet having only two survivors out of dozens reinforces the bigger picture: this model is far more vulnerable to market direction than acknowledged during the euphoria.
The Lesson Behind the Red Ink
Paper losses are not necessarily realized losses - as long as companies are not forced to sell, prices could rebound and erase the red ink. However, a string of DATs stuck underwater serves as a stark reminder that making crypto the heart of a balance sheet means riding every wave of its volatility. For investors weighing shares in these companies, the question is no longer just how much crypto they hold, but at what price they accumulated it.
Reported via @Cointelegraph on X.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
