Bitcoin treasury companies unwind holdings as the DAT model comes under pressure

Falling share prices, debt obligations, and deteriorating market conditions are compelling former bitcoin accumulators to liquidate holdings and restructure their operations.

Strategy, Satsuma, Smarter Web Company, Sequans, Nakamoto, and Empery Digital have all sold bitcoin to repay debt, fund operations, finance buybacks, or shore up cash reserves. Meanwhile, bitcoin miners MARA and Bitdeer have divested holdings to finance AI infrastructure investments. Leadership changes at Twenty One Capital and the collapsed merger of Bitcoin Standard Treasury Company (BSTR) underscore the broader disruption sweeping the digital-asset treasury sector.

Strategy (MSTR) pioneered the digital asset treasury (DAT) model in 2020, using low-cost debt and equity issuance to accumulate bitcoin on its balance sheet. The approach was widely copied during the 2024–2025 bull run, when low rates and surging crypto prices made leveraged bitcoin accumulation appear self-sustaining. Dozens of publicly listed imitators deployed their own cash and took on debt to buy bitcoin as the price climbed toward a record $126,000 in October 2025.

Since then, bitcoin has declined approximately 50%, sending share prices tumbling and forcing many of these companies to rethink their accumulation strategies. The unwind is particularly acute for firms that relied on convertible notes and other debt instruments to fund purchases, as falling collateral values pressure their ability to service or refinance obligations. According to VanEck Head of Digital Assets Research Matthew Sigel, several firms have now exited crypto entirely or are substantially reducing their holdings.

Satsuma and Smarter Web exit positions

This week, Satsuma Technology (SATS) shareholders approved the liquidation of all 668 BTC, the return of capital, and a delisting from the London Stock Exchange.

Another LSE-listed firm, Smarter Web Company (SWC), sold 178 BTC to repay a convertible instrument.

"When we entered into Smarter Convert in August 2025, it provided an innovative alternative to traditional leverage," Smarter Web CEO Andrew Webley said in a statement. "... whilst we continue to recognise the potential benefits of both fiat and Bitcoin-denominated convertible instruments, we do not currently believe they represent the right capital solution for The Smarter Web Company."

Sequans and Nakamoto restructure

Sequans Communications (SQNS) sold 1,025 BTC before disposing of nearly 80% of its remaining holdings to repay convertible debt. The company has ruled out further purchases and plans to monetize its remaining 658 BTC.

Nakamoto (NAKI), whose shares have fallen 99% since its May 2025 SPAC deal, sold approximately 284 BTC to raise $20 million for working capital following its acquisitions of BTC Inc. and UTXO Management. The company also sold roughly 40 BTC received through its derivatives program, according to VanEck's Sigel. Nearly 70% of its remaining 5,342 BTC were pledged against a Kraken loan maturing in December, creating what Sigel described as a potential binary event.

Miners pivot to AI

The sell-off extends beyond specialist treasury companies. Crypto miners including Bitdeer and MARA Holdings are selling bitcoin to repurchase or repay debt and repurpose their energy-supply agreements and computing resources to power AI data centers. The shift reflects rising demand from hyperscalers for energy infrastructure, with some miners finding that leasing power capacity to AI tenants can generate more stable revenue than block rewards.

Other sellers include Empery Digital, which has reportedly sold almost half its bitcoin to finance buybacks and debt repayment, and Strategy, which has sold approximately 3,620 BTC in recent weeks and authorized additional sales to support its U.S. dollar reserves.

Strategy, which originated the investment trend, remains the largest publicly listed holder of bitcoin with more than 840,000 BTC. CEO Michael Saylor remains bullish.

"We will probably sell some Bitcoin to fund a dividend just to inoculate the market," he said. That is not a signal of a broad-based exit plan.

Leadership upheaval and failed deals

Beyond bitcoin sales, management changes and corporate transactions are also unravelling. Jack Mallers stepped down as CEO of Twenty One Capital, while Adam Back's Bitcoin Standard Treasury Company (BSTR) failed to complete its proposed merger due to unfavorable market conditions. The string of departures and cancelled deals highlights how the deteriorating environment is testing not only balance sheets but also the corporate structures and partnerships assembled during the boom.