Viewpoint: The DAT bubble has basically burst, and companies need to maintain their positions and wait for a rebound.

On 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 value net asset value (mNAV) have now fallen back to around 1x or even lower. This trading model, which once regarded token treasuries as growth engines, has experienced a sharp correction. The next direction depends on market behavior: either prices will fall further, triggering disorderly sell-offs, or companies will hold their positions and wait for a rebound. Butterfill said he leans toward the latter, citing an improving macro environment and the possibility of interest rate cuts in December, which would support cryptocurrencies. Butterfill pointed out that bigger challenges lie in structural issues. Previously, a number of companies accumulated oversized treasury assets through public markets without building sustainable businesses, resulting in damaged credibility. Now, investors are becoming less tolerant of equity dilution and excessive concentration in single assets when there is a lack of actual operating income. There are already signs that stronger enterprises are incorporating Bitcoin into robust treasury and foreign exchange management strategies, indicating a healthier development trend.