Bitcoin treasury companies are rewriting their playbook shifting from aggressive Bitcoin (CRYPTO: BTC) accumulation towards acquiring profitable businesses that can generate cash.

DAT’s Evolving Model

The market value of fully diluted Bitcoin treasury company stocks has fallen by nearly $69 billion from its October peak of $141 billion, according to Artemis data cited by Bloomberg.

The downturn has exposed a fundamental weakness in the digital-asset treasury (DAT) model.

Bitcoin doesn’t generate cash flow, leaving companies dependent on issuing stock or debt to finance additional purchases. That model worked better while BTC and treasury-company valuations were climbing.

Falling BTC prices and shrinking investor appetite have now pushed several firms toward what Sora Ventures Chief Growth Officer Mitty Chang calls "DAT version 3.0."

"The companies that are sticking around are the ones that are durable," Chang said, pointing to stronger capital allocation, operating businesses and the ability to pivot.

Sora Ventures, an investor in multiple DATs in Asia, is reportedly raising $1 billion to help portfolio companies build recurring revenue streams.

The key test remains whether DATs can leverage Bitcoin holdings without weakening their balance sheets during downturns.

BTC Firms Chase A Berkshire Model

Twenty One Capital Inc. is among the companies looking beyond simply accumulating Bitcoin.

CEO Raphael Zagury said the company wants to acquire profitable businesses within the Bitcoin ecosystem, comparing its emerging strategy to a crypto version of Berkshire Hathaway Inc. (NYSE:BRK) (NYSE:BRK).

"The balance sheet is at the center," Zagury said, adding that profitable operating companies could create long-term shareholder value alongside its BTC treasury.

Nakamoto Inc. (NASDAQ:NAKA) is pursuing a similar approach after its stock-market troubles threatened its listing.

CEO David Bailey said the company is evaluating acquisitions that could generate enough income to finance future Bitcoin purchases without relying as heavily on equity or debt issuance.

"We have been thinking kind of from the framework of like, if we were a sovereign wealth fund for the nation of Bitcoin, what businesses could we own?" Bailey said.

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