Crypto markets have entered a bear phase. As of February 23, 2026, Bitcoin traded at $65,000, down 26% year over year, and most altcoins fell even further. Past collapses such as FTX, Terra Luna, 3AC, and Celsius linger in memory. While no one can be sure the bottom is in, the lack of a wave of outright bankruptcies is itself concerning, drawing attention to Digital Asset Treasuries (DAT) and whether their coin holdings will be dumped if stress worsens.
DATs, defined as companies holding coins as part of their treasury strategy, are under scrutiny for whether their holdings will sustain the business or end in liquidation. The concern is that their cost bases on coins have fallen and many DATs offer few business models beyond coin ownership, making bear market resilience precarious. In particular, the top two by assets, Strategy and Bitmain, attract attention as potential systemic movers if they falter. These firms are among the favorites of U.S. retail investors, and a collapse could have outsized ripple effects on the crypto market.
Strategy, the largest DAT by assets, holds about 717,131 BTC, roughly 3.4% of the total supply. To fund growth, it has used equity issues and convertible notes, and when the mNAV premium narrowed it shifted to issuing preferred shares to attract capital for additional Bitcoin purchases. The company reports about $22.5 billion in cash and roughly $8.88 billion in annual cash outflows, including $35 million in convertible debt interest and $853 million in preferred dividends, enabling about 2.5 years of burn. Beyond cash, Strategy’s Bitcoin holdings are worth about $46 billion, which provides substantial cushion for debt service and dividends; however, a looming risk is the $30 billion of 2029 convertible notes with a conversion price of $672.40, about 5.1x the current BTC price, meaning bondholders could demand repayment if prices do not rise.
A major risk sits with the 2029 convertible notes, totaling $30 billion with a conversion price of $672.40, about 5.1x the current BTC price; if BTC does not appreciate sufficiently, bondholders could demand repayment and refinancing or asset sales would be forced. If BTC price fails to rise 5.1x by 2029, the company may need to refinance or sell Bitcoin to meet obligations. Management says refinancing would be pursued if possible, but adverse conditions could make refinancing fail or force asset sales, including Bitcoin. In sum, Strategy has staying power, but interest and dividends and the looming convertibles pose meaningful burdens, even as the firm retains ample cash and BTC-based collateral.
Bitmain, the second-largest DAT by assets with about 4.37 million ETH (roughly 3.6% of supply), relies on Ethereum staking to generate about 2–3% annually. It plans to accumulate around 5% of the ETH supply and uses staking yields to pay dividends while pursuing ventures such as MAVAN and Moonshot investments, including Worldcoin and Beast Industries. Staking risk remains if validators underperform or outsourced operators incur losses, and liquidity risk can be higher for smaller DATs, with late-2025 liquidity tightening prompting some peers to sell BTC and ETH to repay debt. Bitmain’s balance sheet is less leveraged than Strategy’s, and staking-based cash flows reduce the immediate risk of rapid impairment, though governance and external validator risks remain potential threats.
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