As crypto prices slide sharply from last year’s highs, a new warning suggests that 2026 could bring additional pressure from an unexpected source: the companies that hold large amounts of digital assets on their balance sheets.
Bitcoin (BTC) is currently trading below $70,000, roughly 50% beneath the all-time high it reached last October. With forecasts predicting a renewed bear market, analysts at The Motley Fool argue that digital asset treasuries (DATs) may soon be compelled to sell part of their crypto holdings.
Mounting Pressure On Crypto Treasury Firms
According to their assessment, falling token prices have left many of these firms sitting on steep paper losses, with some now underwater. If the downturn persists, they may need to liquidate assets to meet debt obligations or respond to margin calls.
At the same time, investors could increasingly favor cryptocurrency exchange-traded funds (ETFs), adding another layer of competition and strain. The concern centers on how these treasury-focused companies financed their crypto strategies.
While all DATs hold significant digital assets, their funding structures differ. Some rely heavily on debt, while others issue equity; the method of capital raising will determine how well they can withstand a prolonged slump.
A key risk is refinancing. If credit conditions tighten or asset values continue to fall, companies may struggle to roll over debt. Leveraged positions could also trigger margin calls, potentially forcing them to sell into a declining market.
Such selling could push prices even lower, setting off a negative feedback loop across the broader crypto ecosystem. At the same time, the rapid growth of crypto ETFs is creating additional competition for digital asset treasuries.
The analysts highlight that both investment vehicles offer investors exposure to cryptocurrencies without requiring them to open accounts on exchanges or manage private keys. However, treasury companies carry more operational and financial risk than passively managed ETFs.
A Prolonged Bear Market Ahead?
While the long-term trajectory of digital assets remains uncertain, the analysts caution that 2026 could be a pivotal year for corporate crypto holders. If prices remain under pressure, forced sales from digital asset treasuries could amplify market weakness.
Such developments would not be isolated events; Motley Fool analysts assert that they could ripple across the entire ecosystem, affecting investors, related companies, and broader market sentiment.
For now, much depends on whether the current slump deepens into a prolonged bear market. Should that occur, the combination of debt burdens, refinancing risks, and intensifying ETF competition may place digital asset treasuries under significant strain — with consequences extending far beyond their own balance sheets.
Featured image from OpenArt, chart from TradingView.com
