Is the Bitcoin DAT Model Broken? Architect Partners' Response Might Surprise You

Over the past weeks, bitcoin digital asset treasury (DAT) companies’ shares have been under significant pressure. Even the largest institutional bitcoin holders like MicroStrategy (MSTR) have lost more than 40% in value during this period. However, the most exciting detail emerges: while the market currently sees BTC price at $78.22K (as of early 2026), it may be mistaken to interpret this sector’s collapse as proof that “the model is broken.”

According to Elliot Chun, managing partner at Architect Partners, the DAT model is not broken—it’s just not sufficiently tested yet. “This period is the most intense testing phase for DATs so far,” Chun says. “In real-time, we will see which companies can manage this downturn and communicate effectively with the market.”

Market Pressure Is Real, But the Model Is Robust

MSTR’s sharp decline relative to BTC this year has worried many investors. According to JPMorgan’s analysis, the reason isn’t just the weakness of the crypto market—it’s also the risk of this stock being delisted from market indices.

Chun’s perspective is broader: “We are still in very early stages. Since we haven’t properly classified the DAT category as an industry, it’s too soon to say the model is broken.”

In short, it’s not about the model being flawed—it’s about the sector’s growth phase speed and the quality of players involved.

Four Different DAT Strategies Emerge

Architect Partners analyzes the bitcoin DAT landscape under four categories:

“Pure Play” DATs: Companies that direct almost all their resources into BTC. They set targets per share in BTC.

“Producer” DATs: Firms that actually produce BTC through operations like bitcoin mining.

“Hybrid” DATs: Entities involved in crypto-related activities but also pursuing non-BTC ventures.

“Participant” DATs: Companies holding digital assets on their balance sheets and using them as financial instruments.

This categorization reveals different risk profiles and growth potentials. Therefore, some failures indicate not that “the model is broken,” but that “choices need to be made.”

50% Failure, 10% Superstar Performance in Five Years

Chun predicts that between 2026 and 2031:

• 50% will fail, delist, or be acquired
• 35% will track the market average
• 10% will outperform major indices like the S&P 500
• 5% will deliver over 700% returns between 2026-2035, challenging the decade-long performance of the Magnificent Seven

“This is normal for any new institutional model,” Chun says. If the product/service isn’t flawed, then market-fit issues or operational inefficiencies may arise—and DATs are experiencing exactly that.

The True Test: Treasury Discipline and Communication

So, which DATs will survive? Chun’s answer is simple: companies with clear strategies, disciplined treasuries, and transparent communication.

Operational clarity, treasury discipline, and strategic planning—these three factors will distinguish survivors from failures. “We will see not broken models, but broken operations,” Chun summarizes.

As corporate treasuries start viewing bitcoin as a strategic asset rather than a speculative one, the most successful DATs could become acquisition targets for the world’s largest public companies.

Inevitable Consolidation

In the next five years, significant consolidation is expected in the bitcoin DAT sector. Weaker-operating companies will be acquired by better-managed firms. The number of strong brands will decrease, but those that survive will be recognized names in the institutional market.

According to a recent Deutsche Bank report, if bitcoin’s price approaches $1 million, these strongest DATs (which currently appear broken) could actually be among the most successful corporate asset strategies. The key now isn’t eliminating flawed models—it’s recognizing and supporting solid teams.