Are Digital Asset Treasuries (DATs) a Temporary Trend?

In 2025, a surge of companies began incorporating cryptocurrencies into their financial strategies, largely influenced by pro-crypto policies from the Trump administration. Traditional businesses made significant investments in crypto, whether through mergers or by entering the US stock market. However, the enthusiasm for Digital Asset Treasuries, or DATs, seems to be waning, as many companies witness a decline in their stock values.

Key Takeaways

DAT Decline: Big names in DATs like MicroStrategy and Bitmine are experiencing significant drops in stock value.
Bygone Craze?: The initial hype surrounding DATs may have peaked, leaving investors questioning their viability.
Importance of NAV: Investors should focus on Net Asset Value (NAV) and Market Cap to Net-Asset-Value (mNAV) to evaluate these companies.
Need for Diversification: DATs must innovate beyond simply holding crypto to remain profitable.
Current Market Position: The overall crypto market is struggling, with Bitcoin prices reverting to early May levels.

The Rise and Fall of DATs

Prominent DAT players such as Bitcoin's MicroStrategy, Ethereum's Bitmine, and Solana's Forward Industries have seen their stocks plummet recently. Once considered market favorites, these companies are now facing significant sell-offs. In 2025, DATs created a new avenue for investors to access cryptocurrency without dealing with wallets, exchanges, or complex chains, as noted by Jean-Marc Bonnefous, Managing Partner of Tellurian Capital.

"DATs provide a compliant and efficient way for US institutional investors to acquire crypto assets without major disruptions to their existing operations," Bonnefous explained to BeInCrypto. This trend was initially sparked by MicroStrategy in 2020 when CEO Michael Saylor decided to convert parts of the company's cash reserves into Bitcoin during a period of significant monetary expansion. Currently, MicroStrategy holds 649,870 Bitcoin, averaging $74,430 per Bitcoin, representing 60% of all Bitcoin held by DATs.

However, as the market fluctuates, some institutional investors may regret their investments in DATs given the downturn in both crypto and traditional asset markets.

"MicroStrategy has the advantage of a long history of revenue, strong capital markets relationships, and was early to establish a substantial Bitcoin position,” said Maja Vujinovic, CEO of FG Nexus. "Newer DATs lack these benefits."

Evaluating Digital Asset Treasuries

Investors need to focus on two crucial metrics when assessing newer DATs: Net Asset Value (NAV) and Market Cap to Net-Asset-Value (mNAV).

"NAV provides a straightforward answer to what the crypto is worth today," Vujinovic said. "Conversely, mNAV reflects what the market is willing to pay based on the company's strategy and execution."

Recent data indicates that NAV across treasuries has dropped dramatically since a peak on October 10, when $19 billion in cryptocurrency value was liquidated. Some investors may not have understood the extent of leverage within the crypto market, leading to widespread auto-deleveraging—evident during last October's event.

From a peak of nearly $120 billion, NAV has now fallen to below $80 billion, as confirmed by data aggregator Artemis. Some assert that investors are aware of the leverage within crypto, and basic greed contributed to both the increase and decrease in prices.

“Investors view DATs as a leveraged bet on the underlying asset ecosystems, giving them a chance to multiply gains. However, this leverage amplifies the negative price impact as well," noted Alex Bergeron of Ark Labs.

The Path to Diversification

For DATs to become viable, they will need to implement strategies beyond merely holding cryptocurrencies. Valuations based solely on NAV may lead them to trade at a discount due to operational costs, such as executive salaries and running expenses.

"I notice a lot of misguided analysis regarding DATs. Specifically, whether they should trade above or below the value of their held assets," commented Matt Hougan.

As a result, DATs will have to innovate with their crypto assets to enhance their mNAV. A proactive approach involving debt issuance on their crypto, as exemplified by MicroStrategy, could support their long-term survival. This strategy has allowed MicroStrategy to build a stockpile of $55 billion since 2020.

“With a diversified strategy, MicroStrategy is ahead of many other DATs,” said Jesse Shrader of Amboss. "Newer DATs have the opportunity to refine their focus and explore unique avenues for revenue, such as low-risk yield opportunities."

Adapting to Market Conditions

Currently, the crypto market is underperforming compared to its explosive momentum in May and June. Bitcoin prices are back to the original levels seen in May, signaling a challenging market landscape.

There are growing concerns about a "risk-off" sentiment where investors are selling off assets and converting to cash. This trend negatively impacts crypto and DATs alike.

“Listed equities are easy to trade, making these new marginal crypto buyers contribute to already volatile market movements,” said Bonnefous.

Some DATs will undoubtedly succeed, but they may face a challenging road ahead, especially as investors begin identifying companies that can maintain strong practices above NAV. As Vujinovic asserts, “The winning DATs will be those that build sustainable businesses focusing on staking income, effective hedging, tokenization, and disciplined treasury management.”