In a notable trend, at least 12 firms that previously focused on digital asset acquisition have recently redirected their efforts towards artificial intelligence. According to Bloomberg, this strategic shift has yet to reignite investor interest.

Stocks of data-related companies tracked by the publication in the U.S. and Canada have experienced a median decline of 43% since the beginning of the year. Many of these stocks are trading below the net asset value of the assets they hold, prompting management teams to exit the industry.

Source: Bloomberg.

Bloomberg provided specific examples of this business "transformation." For instance, K Wave Media Ltd., which previously focused on accumulating Bitcoin, has shifted to developing data centers; since its relaunch in May, its stock has plummeted by 71%.

Similarly, shares of Lixte Biotechnology Holdings Inc. fell by 33% after the company agreed to merge with an energy sector firm in June. AlphaTON Capital, which holds various altcoins, also saw a 33% drop following its rebranding to Alpha Compute in April.

The publication directly associates the weakness in the data-focused sector with the performance of the underlying assets.

Gregory Sichenzia, founder of the legal firm Sichenzia Ross Ference Carmel LLP, succinctly described the change in sentiment: while last year there were no negative expectations for crypto treasury firms, this year, the term has become a "dirty word."

He believes the shift towards AI is logical, given that significant capital is currently flowing in that direction. Tech giants like Alphabet and Microsoft, along with startups such as OpenAI and Anthropic, have increased spending on computing infrastructure, making data center-related companies the top performers in major indices.

Nearly all of the top 10 companies in the S&P 500 index by performance are involved in data center products, including SanDisk, whose stock has surged over 500%, as well as Dell Technologies, Intel, and Micron Technology.

The efforts to capitalize on the AI hype extend beyond the crypto market. Bloomberg cites the example of footwear manufacturer Allbirds, which pivoted towards computing infrastructure after a decline in its own stock and rebranded as Smartbird.

Within the crypto space, Bitcoin miners appear to be faring better than data-focused companies in their transition to AI. CoreWeave has shifted to cloud computing, positively impacting its stock prices.

Shares of Hut 8, Iren, and TeraWulf are also recovering after retrofitting their data centers for data center operations.

Daniel Forman, a partner at Lowenstein Sandler, emphasized that investors are not completely abandoning blockchain: there remains interest in other areas of technology, but not in the current model of digital treasury as it stands.

It's worth noting that Coinbase's CEO, Brian Armstrong, has labeled the shift of crypto projects towards AI as a mistake.