DATs Lose Steam: Are Digital Treasure Hunts Sinking Stocks?
A Wave of Companies Bet Big on Crypto, But Will DATs Lose Momentum?
In recent times, a notable trend has emerged in the financial landscape: companies listing their digital assets, such as bitcoin or other cryptocurrencies, on their balance sheet. This phenomenon has been driven by the adoption of pro-crypto policies by the Trump administration and has since seen traditional businesses turn to crypto through mergers or public listings in US stock markets.
However, this trend seems to be losing steam as many companies holding digital assets are witnessing significant drops in their stock value. Big timers like MicroStrategy (MSTR), which owns 649,870 bitcoins with an average cost of $74,430 per coin, and Ethereum’s Bitmine, Solana’s Forward Industries, among others, have seen their stocks decline substantially over the past month.
Investors are now hitting the ‘sell’ button on these companies that were once considered darlings. DATs, or Digital Asset Treasuries, indeed had a moment of glory in 2025 but has that moment already passed?
Jean-Marc Bonnefous Explains the Rise and Fall of DATs
The Managing Partner of Tellurian Capital notes that DATs initially gained momentum because they offered investors an easy way to access crypto without any hassle. Being listed companies, they are a convenient and compliant option for US institutional investors, allowing them to buy crypto assets without significant changes to their existing workflows.
The current state of the market is indeed different from what it was during May and June when DATs started gaining popularity. A massive wave of liquidations in October led to a $19 billion drop in crypto market value. Whether investors understand the leverage involved in crypto or not, it’s hard to deny that the run-up and subsequent downturn have been extreme.
Investors Should Look Beyond NAV
Investors examining newer DATs should consider Net Asset Value (NAV) and Market Cap to Net-Asset-Value (mNAV) as key evaluation tools. mNAV takes into account the market’s willingness to pay on top of the crypto’s value, reflecting a company’s strategy, credibility, and execution.
While NAV provides a straightforward estimate of crypto worth today, mNAV offers a forward-looking perspective on how investors perceive a DAT’s performance. As seen in data aggregated by Artemis, the total NAV across treasuries has declined from its peak of nearly $120 billion to under $80 billion since October 10.
DATs Need More Than Just Holding Crypto
To run a revenue-producing business, most DATs should do more than just hold cryptocurrency on their balance sheet. This is because their valuation will trade at a discount due to associated expenses like operations and executive pay. To boost the mNAV, DATs need to get creative with their crypto by implementing strategies such as issuing debt on their assets.
This strategy has worked well for MicroStrategy, which amassed a $55 billion cryptocurrency stockpile since being introduced in 2020. In fact, its diversified approach allows it to remain ahead of its peers in the DAT space, according to Jesse Shrader, CEO Amboss.
DATs Need Revenue-Producing Strategies
Newer DATs will need to find revenue sources from their pile of cryptocurrency to boost the forward-looking mNAV valuation. They can do this by lending out crypto, using derivatives, staking for yield, or acquiring more digital assets at a discount.
In a "risk-off" environment where investors are moving assets off their balance sheets and into cash, DATs appear to be victims of this trend. The decrease in NAV from its peak in October indicates the market’s current volatility, making it harder for companies to survive in this space without successful business practices.
The Future of DATs
In the world of DATs, there may be a period of pain before investors can get into gear with which these companies will survive. Some mergers or consolidations are even predicted as investors find tune, indicating that only those with sound business practices and diversified approaches will thrive long-term.
As Vujinovic noted in an interview with BeInCrypto, the next generation of winners in DATs will focus on building real businesses through staking income, smart hedging, tokenization, and disciplined treasury management.
DATs Lose Steam: Are Digital Treasure Hunts Sinking Stocks?
A Wave of Companies Bet Big on Crypto, But Will DATs Lose Momentum?
In recent times, a notable trend has emerged in the financial landscape: companies listing their digital assets, such as bitcoin or other cryptocurrencies, on their balance sheet. This phenomenon has been driven by the adoption of pro-crypto policies by the Trump administration and has since seen traditional businesses turn to crypto through mergers or public listings in US stock markets.
However, this trend seems to be losing steam as many companies holding digital assets are witnessing significant drops in their stock value. Big timers like MicroStrategy (MSTR), which owns 649,870 bitcoins with an average cost of $74,430 per coin, and Ethereum’s Bitmine, Solana’s Forward Industries, among others, have seen their stocks decline substantially over the past month.
Investors are now hitting the ‘sell’ button on these companies that were once considered darlings. DATs, or Digital Asset Treasuries, indeed had a moment of glory in 2025 but has that moment already passed?
Jean-Marc Bonnefous Explains the Rise and Fall of DATs
The Managing Partner of Tellurian Capital notes that DATs initially gained momentum because they offered investors an easy way to access crypto without any hassle. Being listed companies, they are a convenient and compliant option for US institutional investors, allowing them to buy crypto assets without significant changes to their existing workflows.
The current state of the market is indeed different from what it was during May and June when DATs started gaining popularity. A massive wave of liquidations in October led to a $19 billion drop in crypto market value. Whether investors understand the leverage involved in crypto or not, it’s hard to deny that the run-up and subsequent downturn have been extreme.
Investors Should Look Beyond NAV
Investors examining newer DATs should consider Net Asset Value (NAV) and Market Cap to Net-Asset-Value (mNAV) as key evaluation tools. mNAV takes into account the market’s willingness to pay on top of the crypto’s value, reflecting a company’s strategy, credibility, and execution.
While NAV provides a straightforward estimate of crypto worth today, mNAV offers a forward-looking perspective on how investors perceive a DAT’s performance. As seen in data aggregated by Artemis, the total NAV across treasuries has declined from its peak of nearly $120 billion to under $80 billion since October 10.
DATs Need More Than Just Holding Crypto
To run a revenue-producing business, most DATs should do more than just hold cryptocurrency on their balance sheet. This is because their valuation will trade at a discount due to associated expenses like operations and executive pay. To boost the mNAV, DATs need to get creative with their crypto by implementing strategies such as issuing debt on their assets.
This strategy has worked well for MicroStrategy, which amassed a $55 billion cryptocurrency stockpile since being introduced in 2020. In fact, its diversified approach allows it to remain ahead of its peers in the DAT space, according to Jesse Shrader, CEO Amboss.
DATs Need Revenue-Producing Strategies
Newer DATs will need to find revenue sources from their pile of cryptocurrency to boost the forward-looking mNAV valuation. They can do this by lending out crypto, using derivatives, staking for yield, or acquiring more digital assets at a discount.
In a "risk-off" environment where investors are moving assets off their balance sheets and into cash, DATs appear to be victims of this trend. The decrease in NAV from its peak in October indicates the market’s current volatility, making it harder for companies to survive in this space without successful business practices.
The Future of DATs
In the world of DATs, there may be a period of pain before investors can get into gear with which these companies will survive. Some mergers or consolidations are even predicted as investors find tune, indicating that only those with sound business practices and diversified approaches will thrive long-term.
As Vujinovic noted in an interview with BeInCrypto, the next generation of winners in DATs will focus on building real businesses through staking income, smart hedging, tokenization, and disciplined treasury management.