Experts Predict Collapse of Companies Holding Bitcoin and Ethereum

By 2026, the DAT sector faces a significant crisis risk.

By 2026, the sector of public companies with cryptocurrency reserves (DAT) faces the risk of a significant crisis. Shares of many major players have already declined, and industry representatives foresee further deterioration, reports Cointelegraph.

In 2025, numerous firms entered the market, offering investors access to cryptocurrencies through shares. During Bitcoin’s October rally, the sector attracted billions of dollars; however, the subsequent correction severely impacted the capitalization of these enterprises.

A Grim Forecast

MoreMarkets co-founder Altan Tutar described the sector’s prospects as “grim.” In his view, market oversaturation will lead to the closure of most such structures.

The first to exit will be companies focused on altcoins: they will be unable to maintain a market valuation above the asset value on their balance sheets. Tutar believes that major coin holders like Ethereum, Solana, and XRP will also be affected.

Only those offering investors additional value will survive. This refers to products generating stable returns from assets, which can be distributed among shareholders.

A Shift in Business Model

Solv Protocol co-founder Ryan Chow noted that the number of companies holding the first cryptocurrency grew from 70 to 130 in just six months. However, the strategy of mere accumulation no longer guarantees success.

According to Chow, many market participants used the purchase of digital gold merely as a marketing ploy without a real financial structure. Now they are forced to sell assets to cover operational expenses.

The expert is convinced that the approach must change: from speculation to structured capital management. Bitcoin should work in transparent income-generating instruments, rather than sitting on the balance sheet as “dead weight.”

The Threat from ETFs

First Digital CEO Vincent Chok sees the main threat to DAT companies in competition with spot ETFs. Investors increasingly choose exchange-traded funds as a simpler and more regulated tool. The situation worsened with the easing of rules in the US, allowing ETFs to include income from staking.

To stay afloat, crypto companies will need to meet the standards of traditional finance. This requires full transparency, auditability, and compliance procedures at the level of institutional players.

As reported, CoinShares researcher James Butterfill noted that the “treasury” company bubble has effectively burst.