Struggling Companies Rebrand as Crypto Firms Amid Market Trend

From Losses to Blockchain: Companies with Vibrant Pasts Embrace Crypto

A shark-repellent sunscreen marketer, a chocolate-flavored whiskey maker, and a blood-alcohol-reducing drink company — once niche businesses struggling with losses — have now joined a growing trend of public companies rebranding as digital asset treasury (DAT) firms. These companies are investing in cryptocurrency to attract capital, boost stock prices, and reinvent themselves in a volatile market.

So far in 2025, billions of dollars have flowed into companies transforming themselves by making crypto buying and holding their main business focus. Over 200 publicly traded firms have announced plans to hold crypto on their balance sheets as DATs.

From Niche Products to Digital Asset Treasuries

The rebranding comes after years of losses in businesses ranging from lavender-flavored vodka production to indoor marijuana cultivation supplies, and even ozone-infused “nanobubble” water. These companies are now part of a larger market trend that combines crypto enthusiasm with corporate survival strategies.

Eric Trump, son of former President Donald Trump, highlighted the potential impact at a Nasdaq opening bell ceremony for a Trump family-linked DAT in August 2025, saying, “We’re going to change finance forever, it’s that simple.”

Despite high-profile endorsements, experts remain cautious. Austin Campbell, founder of Zero Knowledge Consulting, warns, “We are probably past peak DAT, if we’re being honest about it.” Many DATs experience initial stock price surges followed by prolonged declines, raising questions about long-term sustainability.

Also Read : Gold ETFs Fall After 3-Month 27% Rally: What Investors Should Expect Next

How Digital Asset Treasury Firms Operate

DATs raise capital through public stock sales and use the proceeds to acquire cryptocurrencies. Often, funds are sourced from private investors with links to the specific cryptocurrencies the companies intend to hold.

The first high-profile DAT was MicroStrategy, which began buying bitcoin in 2020 under the leadership of Michael Saylor. Its stock has been one of the best performers over the past five years, inspiring a wave of imitators. While early DATs focused on bitcoin, recent firms have diversified into niche and less-proven tokens.

S.Y. Lee, founder of the crypto project Story, emphasized the appeal of DATs for investors: “Even sophisticated investors hesitate to manage digital wallets. DATs make the process as simple as buying a stock through your brokerage account.”

Big Payouts and Executive Incentives

For struggling companies, the pivot to crypto offers a chance to reinvent their brand and raise new capital. Some executives benefit handsomely. Mill City Ventures, a former online poker and high-interest loan company, now a Sui-focused DAT, pays at least $1 million annually to a firm managing its crypto holdings.

Similarly, SRM Entertainment, a theme park knickknack seller, pivoted to a Tron-focused DAT, resulting in stock sales by CEO Richard Miller netting over $1 million — even as the stock later fell sharply.

Notable Figures and Controversies

Crypto personalities like Justin Sun, founder of Tron, have become prominent in the DAT scene. Sun has been involved in high-profile legal disputes, SEC scrutiny, and media controversies. Yet, he has also facilitated the creation of new DATs and attracted major investors.

Trump family-linked ventures, such as Alt5 Sigma, have similarly complex histories. Formerly a fintech and appliance recycling company, Alt5 pledged $1.5 billion to World Liberty Financial tokens and has faced SEC scrutiny, money laundering convictions in Rwanda, and lawsuits tied to prior business operations.

History Repeats: Crypto Pivots Are Not New

The DAT craze echoes past attempts during the 2017–2018 crypto boom, when companies like Kodak launched KodakCoin and Long Island Iced Tea became Long Blockchain Corp. While these rebrands initially spiked stock prices, most failed to achieve lasting success.

Regulatory oversight, including SEC efforts to approve crypto ETFs, could influence the trajectory of current DATs. Jason Rozovsky of Axelar suggests that growing investor interest in compliant bitcoin DATs indicates these structures may remain a durable market feature, despite regulatory challenges.

Investor Caution: Balancing Opportunity and Risk

While DATs offer a pathway to rapid capital influx and market relevance, they carry high risks due to volatile crypto prices and regulatory uncertainty. Investors are advised to research company histories, token holdings, and governance structures before engaging.

As these once-struggling companies pivot to crypto, their success will hinge on market acceptance, transparent management, and long-term adoption of digital asset strategies — not just short-term speculative interest.

Conclusion: Crypto as a Lifeline or Short-Term Trend?

The rise of digital asset treasury companies reflects an innovative but precarious approach to corporate revival. While high-profile examples like MicroStrategy show potential, many newer DATs face challenges in sustainability, governance, and regulatory compliance.

For investors, these firms represent both an opportunity to tap into crypto markets and a cautionary tale of speculative risk. The trend illustrates the merging of traditional corporate structures with the fast-evolving digital asset economy, a movement likely to attract attention — and scrutiny — for years to come.

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