A sharp decline in cryptocurrency prices has reversed the fortunes of digital asset treasury companies pursuing SPAC mergers. Once trading at premiums to their net asset values, these entities now face discounts amid market turmoil. Ten such deals were announced amid 2025's crypto highs, with two already completed.
In 2025, record-high cryptocurrency prices spurred a surge in digital asset treasury (DAT) companies announcing SPAC mergers. These vehicles aimed to hold and grow digital assets, betting on crypto appreciation and a premium to net asset value (NAV), supplemented by income from activities like lending and liquidity provisioning.
The SPAC market drew inspiration from the strategy of Michael Saylor’s Strategy Inc. (MSTR), where holding $1 of Bitcoin translated to roughly $2 of market value. This led to 10 SPACs planning to list DATs. Stocks often spiked upon deal announcements, echoing the 2021 bull market, despite a track record of underperformance for crypto-related de-SPACs.
However, a major crypto sell-off has transformed initial enthusiasm into a rout. DATs that previously traded at premiums to NAV now operate at discounts. Of the 10 announced deals, two have listed via SPAC merger: Twenty One Capital (XXI) and ProCap Financial (BRR). Eight mergers remain pending.
Additionally, some already-public companies have pivoted to form DATs, including Empery Digital (EMPD). This shift highlights how the crypto market's volatility has broadly affected these investment structures.
