Crypto Firms Bet on Exotic Tokens Amid Market Slump, Raising Volatility Concerns

In the face of a cooling crypto market, companies that had been focused on stockpiling bitcoin and other major cryptocurrencies are now turning to more speculative, volatile tokens in a bid to amplify returns. This shift has raised concerns about increased market volatility and potential hazards for investors.

As of September 2025, there were at least 200 digital asset treasury (DAT) companies, mostly focused on bitcoin, with a combined capitalization of around $150 billion. However, as bitcoin prices have sagged, these firms are now expanding into esoteric and less liquid cryptocurrencies, a move that experts warn could significantly increase the risks.

The trend has been fueled by the meteoric success of Michael Saylor's Strategy and a crypto-friendly stance from the U.S. government. Many penny stock companies are now launching daily to get in on the action, often funding their token purchases through private placements and PIPEs (private investments in public equity).

The shift has had significant consequences for investors. According to estimates, retail investors lost around $17 billion on trades involving high-profile bitcoin DAT companies. Additionally, the growing influence of these firms has become a concern, with DAT companies now holding 4% of all bitcoin, 3.1% of all ether, and 0.8% of all solana, potentially impacting the prices of these major cryptocurrencies.

As the market volatility continues, some DAT companies are exploring new ways to boost shareholder value, such as launching their own stablecoins or repurchasing shares. However, experts warn that if these firms simply sit back and only buy tokens, they may face significant challenges in the long run.