Crypto Treasury Firms Transition to AI Amid Fading DAT Model

Shift from DAT Model to AI

More than a dozen companies specializing in digital asset treasury are pivoting toward artificial intelligence (AI) and data centers, following a significant decline in the demand for the DAT model. This transition comes as investor enthusiasm wanes, primarily due to falling cryptocurrency prices.

Market Performance and Declines

The shift in focus has not yielded immediate positive outcomes for these firms. Notably, K Wave Media saw its shares plummet by approximately 71% after its attempts to reinvigorate market confidence through a shift to data-center operations. Other notable companies like Lixte Biotechnology and Alpha Compute experienced share declines of about 33% after announcing similar strategic pivots.

Issues with the DAT Model

The traditional model employed by digital asset treasury companies, which involves raising funds through public equity, debt, or private placements to invest in cryptocurrencies, has struggled as crypto prices fell. As the value of holdings decreases, maintaining a premium above net asset value becomes challenging, making new share sales less attractive. VanEck highlighted that many DATs are now facing pressure to consolidate and explore new operational strategies.

K Wave’s Strategic Changes

K Wave announced on May 4 its intention to reallocate up to $485 million previously dedicated to a Bitcoin treasury into AI-focused initiatives and data center operations. Following the announcement, the company’s stock dropped nearly 25% on the first trading day. K Wave has since disposed of its remaining Bitcoin holdings to alleviate debts.

Other Companies Adapting

Lixte, which entered the DAT market in 2025, has now targeted a new strategy of mobile battery storage for data centers. This change coincided with their acquisition of NOMAD Transportable Power Systems. Similarly, AlphaTON Capital transitioned from a Toncoin treasury strategy to being rebranded as Alpha Compute, focusing on GPU services and AI infrastructure since April 2026.

The Role of AI in Revenue Generation

AI data centers promise revenue avenues through computing contracts and hosting services, differing significantly from the previous treasury model reliant on asset appreciation. However, the shift to AI requires considerable upfront investment, raising questions for firms that previously struggled with funding digital asset acquisitions.

Future Prospects

While larger companies may have the capacity to continue fundraising and holding cryptocurrencies, smaller firms are increasingly looking to AI as a new revenue source. The early results indicate that markets expect tangible evidence of effective funding and operational execution before rewarding these strategic changes.