Publicly traded digital asset (DAT) companies are changing their strategies due to the market saturation of Bitcoin and other major cryptocurrencies and the weakening of investor sentiment.
As of September, there are at least 200 DAT companies with a market capitalization of approximately $150 billion USD; this number has tripled compared to a year ago. Some of these firms have begun to shift towards less well-known, high-volatility tokens.
For example, steps like Greenlane’s acquisition of BERA, OceanPal’s acquisition of NEAR, and Tharimmune’s acquisition of Canton Coin are noteworthy. This situation points to increasing risks in the crypto market and traditional financial markets. Moody’s digital asset analyst Cristiano Ventricelli commented:“DATs are moving towards more exotic and less liquid cryptocurrencies; this is precisely where the risk can be much higher.”
Furthermore, many DAT companies are funding their token purchases through private placement (PIPE); between April and November, more than 40 DAT firms raised over $15 billion in total capital — only 5 of which were Bitcoin-focused. This means dilution of stock ownership, volatility in stock prices, and companies becoming particularly vulnerable to market downturns.
