Why are companies like SharpLink Gaming Inc. losing money on crypto?

Companies like SharpLink Gaming Inc. are losing money because their cryptocurrency investments have significantly decreased in value, and these assets do not generate yield.

What are digital asset treasuries and why did they fail?

Digital asset treasuries were corporate funds converted into cryptocurrencies. They failed because the volatile nature of crypto led to massive value drops without providing any income.

What is Michael Saylor's Strategy Inc. role in crypto investments?

Michael Saylor's Strategy Inc. inspired many companies to convert their cash into cryptocurrencies, a trend that has now resulted in significant losses for these firms.

Home / Business and Economy / Crypto Cash Vanishes: Companies Face Financial Ruin

Crypto Cash Vanishes: Companies Face Financial Ruin

7 Dec, 2025

•

Summary

Companies that converted cash to crypto now face severe financial losses.
Digital asset treasuries saw share prices plummet after initial surges.
Lack of yield from crypto holdings impacts debt payment ability.

Crypto Cash Vanishes: Companies Face Financial Ruin

Companies that enthusiastically converted corporate cash into cryptocurrencies are now confronting substantial financial setbacks. This once-promising investment strategy has led to a sharp decline in share prices, leaving many firms in a precarious financial position.

The trend of establishing digital asset treasuries, popular in the first half of 2025, has reversed dramatically. For example, SharpLink Gaming Inc. saw its stock surge over 2,600% after acquiring Ethereum tokens, but has since dropped 86% from its peak.

Analysts attribute this downfall to the non-existent yield from these crypto holdings, making it challenging for companies to service debt incurred for token purchases. This situation has eroded investor confidence and limited capital raising prospects.