Are Digital Asset Treasuries (DATs) Just a Fading Fad?
Digital Asset Treasuries (DATs) are losing momentum as their stock values decline following a 2025 surge driven by pro-crypto policies.Summary
Digital Asset Treasuries (DATs), companies holding crypto on their balance sheets, saw a surge in 2025, partly fueled by pro-crypto policies, offering institutional investors an accessible way to gain crypto exposure without direct wallet management. However, major DATs like MicroStrategy, Bitmine, and Forward Industries have seen stock values plummet recently, suggesting the craze might be fading amid a broader market downturn and investor 'risk-off' sentiment. Experts note that while MicroStrategy benefits from being an early mover with deep capital relationships, newer DATs must evolve beyond simply holding crypto. To justify valuations above their Net Asset Value (NAV), these companies need to generate revenue through activities like issuing debt on their crypto, staking, lending, or using derivatives to boost their Market Cap to Net-Asset-Value (mNAV). The market correction, highlighted by a major liquidation event in October 2025, showed the amplified impact of leverage in the crypto market, leading to a significant drop in total DAT NAV. Survival will depend on DATs building real businesses with sound treasury management practices.
(Source：BeInCrypto)