As the once booming bitcoin rally loses steam, a growing number of crypto treasury firms are turning to lesser-known and riskier digital tokens in search of higher returns a move that analysts warn could unleash fresh waves of volatility across financial markets.
These companies, known as Digital Asset Treasuries (DATs), originally made fortunes by stockpiling bitcoin and other leading cryptocurrencies. But with markets now saturated and investor enthusiasm cooling, many firms are exploring more speculative coins like BERA, NEAR, and Canton Coin, according to a Reuters analysis of company disclosures.
Industry observers say the trend underscores the increasing overlap between traditional finance and the unpredictable world of digital assets a blend that could pose new dangers for both investors and the broader market.
“DATs are expanding towards more exotic and less liquid cryptocurrencies, and that’s exactly where the risk could be much higher,” said Cristiano Ventricelli, senior analyst at Moody’s Ratings.
Rapid Growth and Rising Risks
Encouraged by U.S. President Donald Trump’s crypto-friendly stance and inspired by the investing success of Michael Saylor’s Strategy, the number of publicly traded crypto treasury firms has surged.
By September 2025, over 200 DATs collectively managed around $150 billion, tripling in size compared to the previous year, according to law firm DLA Piper.
Many of these are penny stock companies seeking quick profits. With bitcoin prices slipping, they are shifting to smaller, lesser known tokens to maintain earnings a strategy some experts call “high risk, high volatility.”
Big Players, Bigger Stakes
Major investors such as Winklevoss Capital, Galaxy Digital, Pantera Capital, and Jump Crypto have participated in these ventures, often through PIPE deals (private investment in public equity). Between April and November, about 40 DATs raised over $15 billion, mostly targeting alternative coins rather than bitcoin.
While these deals offer firms quick funding, they also heighten shareholder dilution and stock price swings, particularly when markets drop.
This was evident on October 10, when renewed U.S. China trade tensions sent crypto stocks tumbling BitMine plunged 11%, Forward Industries fell 15%, and even Strategy dropped 5%.
Struggling for Stability
Some DATs are now trying to stabilize their stock values. ETHZilla and Forward Industries have launched share buybacks, while others like SUI Group are creating their own stablecoins to sustain value.
“If a DAT just sits back and only buys tokens, long term, you’re going to get absolutely decimated,” warned Marius Barnett, chairman of SUI Group.
Analysts caution that while diversification into fringe tokens may promise short-term gains, it also amplifies exposure to sudden market crashes.
“The hype that lifted DATs last year has cooled,” said Peter Chung, research head at Presto Research, “but it could return and with it, even greater risk.”Crypto treasury firms, once focused on bitcoin, are now betting on riskier, less-known coins to sustain profits as the bitcoin rally weakens. Analysts warn this shift could inject fresh volatility into global markets and endanger investors.
