Opinion: The DAT bubble has largely burst, companies need to maintain their positions and wait for a rebound

BlockBeats News, December 6, according to CoinDesk, James Butterfill, Head of Research at crypto asset management firm CoinShares, stated in a report that the bubble of Digital Asset Treasury (DAT) companies has largely burst. By the summer of 2025, some companies that were trading at 3 to 10 times their market net asset value (mNAV) have now fallen back to about 1 time or even lower. This trading model, which once regarded token treasuries as a growth engine, has experienced a sharp correction.

The next move depends on market behavior: either prices fall and trigger disorderly sell-offs, or companies maintain their positions and wait for a rebound. Butterfill said he is more inclined to the latter, citing an improving macro environment and a possible interest rate cut in December, which would support cryptocurrencies. Butterfill pointed out that the bigger challenge lies in structural issues. Previously, a group of companies accumulated oversized treasury assets through the public market without building sustainable businesses, resulting in damaged credibility.

Now, investors are becoming less tolerant of equity dilution and excessive concentration in a single asset when there is a lack of actual operating income. There are already signs that stronger companies are incorporating bitcoin into rigorous treasury and foreign exchange management strategies, indicating a healthier development trend.