Digital-Asset Treasury Firms Pivot to AI as Crypto Stocks Fall 43%

Digital-asset treasury firms shifted into AI-related ventures in recent months as token prices and their own valuations declined, according to a Bloomberg report. The pivot follows the collapse of the crypto treasury trade, where companies raised capital to buy cryptocurrencies expecting their shares to trade at a premium to holdings. Bloomberg-tracked treasury stocks posted a median decline of 43% this year, while bitcoin dropped 49% from its October peak and ether fell 62% from its August 2025 record.

K Wave Media Falls 71% After May AI Pivot

At least a dozen digital-asset treasury firms pivoted to AI-related ventures as the crypto treasury model unraveled. K Wave Media, previously focused on accumulating bitcoin, fell 71% since turning toward data center development in May. Lixte Biotechnology lost 33% since agreeing to merge with a battery company in June. Alphaton Capital, a former holder of alternative cryptocurrencies, dropped 33% since rebranding as Alpha Compute in April.

Strategy, which popularized the treasury model under Michael Saylor, saw shares fall 81% from their 2024 record. The company reduced its bitcoin holdings as the model that once flourished during token price climbs began to unravel when many companies fell below the net value of their crypto reserves.

Bitcoin Miners Redirect Capacity to AI Workloads

Bitcoin miners attracted investors after redirecting capacity toward AI workloads, with power contracts, land and data centers adapted for high-performance computing. Coreweave began as a miner before becoming a cloud-computing provider, now holding a market value of approximately $40 billion with shares up 80% since its March 2025 initial public offering.

Hut 8, Iren and Terawulf attracted investors after redirecting capacity toward AI workloads. Daniel Forman, a partner at Lowenstein Sandler, stated: "I think DATs, as we've seen them, are probably done."

FAQ

Why did digital-asset treasury firms pivot to AI? Digital-asset treasury firms shifted to AI ventures as token prices and their own valuations declined. The crypto treasury model, where companies raised capital to buy cryptocurrencies expecting shares to trade at a premium to holdings, unraveled when many companies fell below the net value of their crypto reserves.

How did bitcoin miners perform compared to treasury firms in the AI pivot? Bitcoin miners demonstrated stronger performance by adapting existing infrastructure for AI workloads. Coreweave, which began as a miner, achieved a market value of approximately $40 billion with shares up 80% since its March 2025 IPO, while treasury firms like K Wave Media fell 71% after their AI pivot.