Is the digital asset treasury (DAT) just a passing trend?

The year 2025 witnessed a wave of traditional businesses integrating cryptocurrency into their balance sheets. Driven by President Trump's supportive cryptocurrency policies, many companies boldly placed large bets in this field through mergers or listing on the stock exchange.

However, the “DATs” (Digital Asset Treasuries) are gradually losing their appeal, as the stock prices of many companies in this group continue to plummet.

Easy access – a special advantage

Prominent names such as Strategy (Bitcoin), Bitmine (Ethereum), and Forward Industries (Solana) all recorded significant declines last month. Investors, who once viewed these as the “stars” of the market, are now collectively dumping DATs shares. Has the glorious era of DATs come to an end?

According to Jean-Marc Bonnefous, Managing Partner of Tellurian Capital, the appeal of DATs comes from the fact that they provide investors with the opportunity to access cryptocurrency without having to interact directly with wallets, exchanges, or complex blockchain networks.

“DATs, as a public company, are a convenient and legally compliant way for investment organizations in America to own digital assets without needing to change their current operating procedures,” Bonnefous shared.

This story began in 2020, when Strategy (NASDAQ: MSTR), led by Michael Saylor, decided to convert a portion of the company's cash into Bitcoin during the pandemic. To date, Strategy has acquired 649,870 BTC at an average purchase price of 74,430 USD each.

Strategy holds 60% of the total BTC that DAT currently holds | Source: CoinMarketCapNevertheless, many institutional investors are feeling “regret” over their decision to invest in DATs, amid a downturn in both the cryptocurrency and traditional asset markets. However, Strategy still has a significant advantage due to its years of experience and solid position in the capital market.

“The strategy has decades of revenue, extensive relationships in the financial industry, and is a pioneer in establishing a significant position with Bitcoin, bringing credibility and low-cost capital,” said Maja Vujinovic, CEO of FG Nexus (NASDAQ: FGNX). “New DATs do not have this advantage.”

NAV and mNAV – The key to valuing assets

For new DATs, investors need to pay special attention to the net asset value (NAV) and the market capitalization to NAV (mNAV) ratio as important evaluation indicators.

“NAV is the actual value of the amount of cryptocurrency that the company holds at the current time,” Ms. Vujinovic explained. “mNAV reflects the market's willingness to pay more for the strategy, reputation, and operational efficiency of the business.”

Total NAV on treasury bonds since May 1, when DAT began to take off | Source: ArtemisNotably, the DAT frenzy peaked on October 10, 2025, coinciding with a moment when the cryptocurrency market faced massive liquidations, resulting in 19 billion USD worth being wiped out. Many investors may not be fully aware of the level of leverage used in this market, where trades can be amplified up to 100 times, leading to significant price drops.

From a peak of nearly 120 billion USD in October, the NAV of the DAT has dropped below 80 billion USD, according to data from Artemis. Some opinions suggest that it was greed that drove prices up high, only to cause the market to plummet when leverage had the opposite effect.

“DATs are seen as a leveraged investment in the digital asset ecosystem, providing the potential to double profits but also amplifying risks when the market declines,” said Mr. Alex Bergeron, Ark Labs.

Diversification – A vital path for DATs

Most DATs will not be able to sustain their business operations solely by holding cryptocurrencies. If the enterprise value is based solely on NAV, the stocks will be undervalued due to operational and management costs.

Therefore, DATs need to be creative in exploiting the source of cryptocurrency to increase mNAV. mNAV is a future-oriented market capitalization metric that reflects both the value of the cryptocurrency and investors' expectations for the potential development of the business.

DATs can issue debt backed by digital assets – a strategy that has helped Strategy accumulate a reserve worth 55 billion USD since 2020. This is also the reason why Strategy maintains its leading position in the industry.

“The strategy with diversification has outpaced many other DATs,” commented Jesse Shrader, CEO of Amboss. “However, new DATs may focus on profitable areas or build pioneering strategies in new sectors such as low-risk profit opportunities.”

New DATs need to find revenue sources from the amount of cryptocurrency held, through lending, using derivatives, staking to earn interest, or purchasing additional digital assets at discounted prices. A professional team in the public market will be a decisive factor for long-term success.

“Risk-Off” Trend – Current Challenges

The current cryptocurrency market is “dull” compared to the vibrant period in May and June – the time when the DAT craze exploded. The price of Bitcoin is currently around 91,000 USD, returning to the starting line of May.

Bitcoin price chart | Source: CoinphotonThere are signs that a “risk-off” environment is taking place, as investors prioritize holding cash and are liquidating easily tradable assets. Cryptocurrencies and DATs are clearly victims of this trend.

“Listed stocks are easy to buy and sell, so new buyers will contribute to the already high 'risk-on/risk-off' volatility in the market,” Bonnefous commented.

Some DATs may weather the storm, but there will definitely be difficult periods, even involving mergers or consolidations, when investors identify which companies can maintain value above NAV due to efficient operations.

“The winning DAT generation in the next round will be those businesses that build real value: income from staking, smart risk management, tokenization, and professional treasury management,” said Ms. Vujinovic.

In summary, DATs are at a major crossroads: either innovate and diversify to survive, or be eliminated from the harsh competition of the digital asset market.

Mr. Teacher