As cryptocurrency prices decline, companies relying on the "digital asset treasury" model for expansion are seeking new narratives. Foreign media, citing a joint report by Bloomberg, point out that more than a dozen related companies have shifted their focus to AI, data centers, and computing power businesses, as market interest in simply expanding through cryptocurrency holdings is waning.
The so-called DAT model typically involves a company raising funds through the public market, issuing bonds, or conducting private placements to purchase crypto assets. When the company's market capitalization exceeds the value of its token holdings, management can continue to raise funds and expand its holdings. This model is easier to operate when market sentiment is high, but the premium often narrows when the price of the token weakens.
The appeal of the cash-based expansion model is declining.
The report, citing Toufic Adlouni, a partner at investment bank Renno & Co., stated that most of the relevant companies are either shifting their focus or have stagnated. While this is only an advisor's opinion and does not represent a complete picture, the recent shifts in direction by several companies indicate that some boards of directors no longer see "continuing to accumulate cryptocurrency" as a sufficiently clear growth story.
For these companies, the issue isn't just about cryptocurrency price volatility, but also whether the capital market is willing to continue giving them a valuation premium. Once the premium disappears, the expansion chain relying on issuing shares to buy cryptocurrency will weaken.
K Wave abandons Bitcoin expansion plans
On May 4, K Wave announced that it could redirect up to $485 million from the Bitcoin Treasury protocol to data centers, GPU leasing, and AI acquisitions. The plan also includes the sale of existing businesses and the divestiture of approximately $48 million in debt and related liabilities.
crypto.news previously reported that the company's stock price fell nearly 25% on the first trading day after the announcement. Bloomberg's subsequent statistics show that since the shift in May, K Wave's stock price has fallen by approximately 71%. Subsequently, the company sold its remaining 88 BTC to repay $6 million in debt, ending its previous plan to target 10,000 BTC.
The company stated that its transformation goal is to build a scalable platform covering data center and computing power services. However, to date, the market has not seen any new business that can replace the attention generated by the previous Bitcoin project.
Lixte and Alpha Compute shift their focus to computing power services.
Lixte entered the digital asset treasury sector in 2025, having purchased 10.5 BTC and 300 ETH for approximately $2.6 million. At the time, the company stated that crypto assets comprised about 43.6% of its treasury, with a maximum permitted allocation of 50%.
By June 2026, Lixte agreed to acquire NOMAD Transportable Power Systems and planned to rename it NOMAD Power Solutions, shifting its focus to providing mobile battery storage for data centers affected by grid connection delays. Bloomberg reported that Lixte's stock price fell by approximately 33% after the announcement.
In September 2025, AlphaTON Capital launched its Toncoin Treasury strategy, aiming to allocate approximately $100 million in TON and Telegram infrastructure. By April 2026, the company had changed its name to Alpha Compute, shifting its focus to GPU services, confidential computing, and AI infrastructure.
AI can generate revenue, but it requires a greater investment.
Unlike the treasury model, which relies primarily on asset appreciation and financing capabilities, AI data centers can generate operating revenue through computing power contracts, hosting, and power supply. This is one of the reasons why many crypto mining companies have shifted towards AI in recent years, as they already control power access, data centers, and cooling facilities.
However, AI infrastructure is not a low-asset business either. Data centers, dedicated chips, electricity costs, and long-term customer contracts all require significant upfront investment. For small companies that already struggled to raise funds for expanding their crypto assets, transitioning to AI may not be any easier.
The report argues that this shift doesn't mean all digital asset treasury companies will leave the crypto market. Larger companies may continue to raise funds and hold tokens; while for smaller companies, AI is more of a revenue narrative. However, judging from early stock price performance, the market currently values funding sources, customer acquisition, and execution capabilities more.
