Struggling Companies Rebrand as Crypto Treasury Firms/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Dozens of struggling public companies are rebranding as “digital asset treasury” firms (DATs), abandoning failed ventures in favor of cryptocurrency holdings. Despite early stock boosts, many DATs are already seeing steep declines amid concerns about transparency, sustainability, and regulatory scrutiny. Industry players and Trump-linked ventures remain bullish—but experts warn the hype may be peaking.
Crypto Pivot Craze + Quick Looks
- Over 200 public companies now operate as digital asset treasury companies (DATs).
- Many DATs were previously money-losing firms with failed products.
- Trump family members and allies have been involved in multiple DAT ventures.
- SRM Entertainment, once a shark-repellant sunscreen seller, now holds crypto.
- Safety Shot claims its beverage reduces blood-alcohol levels by 50%.
- Some DAT executives cashed in stock amid surges, then saw sharp drops.
- SEC and courts are investigating past unethical business practices at several DATs.
- Experts say DATs simplify crypto investing but question long-term viability.
- SEC rule changes may impact the DAT trend going forward.
Deep Look: Struggling Companies Rebrand as Crypto Firms in Digital Asset Gold Rush
WASHINGTON — October 22, 2025 – Once known for gimmicky products like chocolate whiskey, shark-repellent sunscreen, and boozy detox drinks, a wave of previously struggling companies are now at the center of a booming trend: rebranding as digital asset treasury (DAT) companies.
With flashy relaunches and cryptocurrency-focused missions, more than 200 public companies in the U.S. have declared themselves DATs this year, using investor capital to buy and hold digital currencies instead of selling traditional products or services. The transformation is designed to offer investors exposure to crypto without the complexity of managing digital wallets—though not without risks.
“We’re going to change finance forever,” said Eric Trump, standing beneath a giant screen at Nasdaq in August, celebrating the launch of a Trump family-linked crypto DAT. “It’s a great milestone for our country.”
But behind the marketing hype are questionable financials, legal controversies, and growing concerns that the DAT bubble may already be bursting.
What Are Digital Asset Treasury Companies?
Digital Asset Treasury companies are publicly traded firms that raise capital—usually via stock sales—to acquire cryptocurrency. In essence, they convert their balance sheets into crypto holdings, making it easy for traditional investors to gain exposure to digital assets through the stock market.
The model exploded after MicroStrategy, now rebranded as Strategy, became the first DAT in 2020 by aggressively buying bitcoin under the leadership of outspoken crypto advocate Michael Saylor. Its early success inspired a flood of imitators.
While the initial wave of DATs focused on bitcoin, recent iterations have expanded into lesser-known and riskier cryptocurrencies, such as meme coins and niche tokens backed by celebrity endorsements or venture capital.
“Even experienced investors hesitate to manage their own wallets,” said S.Y. Lee, founder of the crypto project Story. “DATs make it as easy as buying a stock.”
From Sunscreen and Whiskey to Meme Coins
Many of the companies joining the DAT movement have colorful, often failed histories.
Take SRM Entertainment, a company best known for selling theme park souvenirs. After years of losses and questionable business pivots—including shark-repellent sunscreen—SRM reinvented itself as a Tron-focused crypto DAT. CEO Richard Miller, once a broker at infamous firm Stratton Oakmont (featured in The Wolf of Wall Street), exercised stock options just before a price surge, netting over $1 million in personal profits.
Another example is Safety Shot, previously known for products ranging from herpes treatments to women’s wellness supplements. The company now markets a drink it claims can lower blood alcohol by 50% in 30 minutes—and also holds Bonk, a dog-themed meme coin. Safety Shot was recently sued by Coachella Festival organizers for falsely claiming sponsorship in a press release. A court issued an injunction against the company for misleading conduct.
Legal Challenges and Past Scandals
The trend has drawn scrutiny from regulators. Several DATs or their predecessors face SEC investigations, lawsuits, or fraud accusations.
- Alt5 Sigma, now backing the Trump family’s World Liberty Financial token, was previously involved in recycling household appliances and developing pain medications. The company’s predecessor, JanOne, was sued by the SEC in 2021 for allegedly faking financial reports.
- Alt5’s Canadian subsidiary was convicted of money laundering in Rwanda, and the company has been accused of hiding stock from creditors.
- Eric Trump was originally set to join Alt5’s board but now serves as a “board observer” to comply with Nasdaq rules.
A History of Crypto Pivots
This isn’t the first time financially unstable companies have tried to ride the crypto wave.
During the 2017–2018 crypto boom, companies like Kodak and Long Island Iced Tea rebranded as blockchain businesses. Kodak’s KodakCoin flopped, while Long Blockchain Corp. was delisted from Nasdaq and saw multiple executives charged with insider trading.
“We are probably past peak DAT,” said Austin Campbell, founder of Zero Knowledge Consulting and professor at NYU’s Stern School of Business.
Mixed Results and Market Volatility
While some DATs enjoy short-term stock surges, many see steep declines once the hype fades.
For example:
- SRM Entertainment stock surged to over $10 after announcing its crypto pivot but has since dropped sharply.
- Other firms have quietly seen their valuations collapse as investors lose confidence in their crypto holdings or corporate leadership.
Despite the volatility, some venture capitalists continue backing these efforts. a16z crypto, the digital asset arm of Andreessen Horowitz, recently supported Story, a crypto platform aimed at monetizing intellectual property. The startup partnered with Heritage Distilling, maker of lavender vodka and chocolate whiskey, to form a new DAT.
Regulatory Outlook and ETF Competition
The SEC is reportedly considering rule changes that would make it easier to launch exchange-traded funds (ETFs) focused on niche cryptocurrencies, which could offer competition to DATs.
Still, not all analysts believe this spells the end of DATs.
“Investor interest in bitcoin DATs has continued to grow,” said Jason Rozovsky, head of policy at Axelar, a crypto infrastructure firm. “Even with ETFs coming, the simplicity and liquidity of DAT stocks make them durable.”
What’s Next for DATs?
The DAT model has opened a new pathway for both crypto exposure and corporate reinvention, but the long-term viability remains uncertain. Critics argue that many companies are using crypto as a distraction from poor fundamentals and past failures.
As regulatory pressure mounts and investor skepticism grows, companies that jumped on the crypto bandwagon may soon face the same fate as their pre-crypto incarnations — with a volatile ride in between.
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