CoinShares: The DAT bubble has basically burst, and the solution lies in structural reform

PANews, December 5—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 had been trading at 3 to 10 times their market value net asset value (mNAV) have now fallen back to around 1x or lower. This trading model, which once regarded token treasuries as growth engines, has experienced a sharp correction. The next move depends on market behavior: either prices drop and trigger disorderly sell-offs, or companies hold their positions and wait for a rebound. Butterfill said he leans toward the latter, citing an improving macro environment and the possibility of rate cuts in December, which would support cryptocurrencies.

Butterfill pointed out that bigger challenges lie in structural issues. Previously, a group of companies accumulated oversized treasury assets through public markets but failed to build sustainable businesses, resulting in damaged credibility. Now, investors are becoming less tolerant of share dilution and excessive concentration in single assets when there is a lack of real operating income. There are already signs that stronger companies are incorporating Bitcoin into rigorous treasury and foreign exchange management strategies, indicating healthier development trends. The concept of digital asset treasuries is not disappearing but is being re-categorized. The new generation of companies will need fundamental support, credible business models, stricter governance structures, and realistic expectations, treating digital assets as tools rather than everything.