AI-Related Turnarounds Fail to Lift Digital Asset Treasury Stocks

Digital asset treasury stocks have slumped as crypto prices fell, even as at least a dozen companies shifted into AI-related businesses in recent months. According to Foresight News, Bloomberg reported that the shares of several firms remained weak after their pivots. K Wave Media has dropped 71% since moving into data center operations in May, Lixte Biotechnology has fallen 33% since agreeing to merge with a battery company in June, and AlphaTON Capital has declined 33% since renaming itself Alpha Compute in April. By contrast, bitcoin miners that shifted toward AI computing infrastructure have performed better. CoreWeave now has a market value of $40 billion and its shares are up 80% since its March 2025 listing, while Hut 8, Iren, and TeraWulf have also drawn more investor attention after converting data centers for AI use. Bloomberg's tracked U.S. and Canadian DAT stocks have posted a median decline of 43% this year. Bitcoin is down 49% from its October peak last year and has fallen 27% this year, while Ethereum is down 38% this year and 62% from its August 2025 all-time high. The digital asset treasury model was pioneered by Strategy founder Michael Saylor in 2020. Strategy's stock rose more than 3,000% from the end of 2019 to its November 2024 record high, but it has since fallen 81%, and the company has also continued selling Bitcoin holdings.