From Bold Bet to Systemic Risk? Digital Asset Treasury Firms Confront the Costs of Conviction

Digital Asset Treasury (DAT) companies have emerged as a key narrative in 2025, with many institutional gamers betting large on digital belongings as half of their balance-sheet methods. However, the volatility in crypto markets has put these treasury fashions to the take a look at.

This raises a important query: Are companies actually sturdy sufficient to maintain their digital asset treasury methods—or have many merely copied (Micro) Strategy’s high-profile playbook amid the hype? To discover out, BeInCrypto consulted a number of main specialists to delve deeper into whether or not these corporations can endure the present market surroundings or danger triggering broader systemic stress.

What Are DATs? 

DAT companies, or Digital Asset Treasury corporations, are publicly traded corporations that purchase digital belongings as a core half of their enterprise technique. Strategy (previously MicroStrategy) began this development in 2020 by accumulating Bitcoin. Soon, many extra adopted.

According to the newest knowledge from Bitcoin Treasuries, 205 public corporations maintain BTC on their stability sheets. Furthermore, general public corporations maintain over 1 million Bitcoins, with Strategy alone controlling 640,418 BTC.

The development extends past BTC. Strategic ETH Reserve knowledge confirmed that 16 public companies control over 4.75% of Ethereum’s present provide and have dedicated over $22 billion.

Similarly, Solana-focused firms have invested $3.76 billion in the asset. BeInCrypto just lately reported that DATs collectively manage $105 billion in the three asset lessons.

Corporate Crypto Portfolios Tested by Falling mNAVs

While the funding scale displays confidence in these belongings, holding them has not been with out challenges. Artemis Analytics knowledge exhibits that the mNAV of corporations holding BTC, ETH, and SOL has continued to drop sharply, hitting new lows. 

In reality, after the market crash, Metaplanet’s mNAV fell to 0.99, marking the first occasion of the metric falling under the 1.0 threshold. While it recovered shortly after, the drop nonetheless raises considerations. Similarly, different companies confronted related setbacks.

Fakhul Miah, Managing Director of GoMining Institutional, informed BeInCrypto that corporations holding digital belongings like Bitcoin function in a risky, mark-to-market surroundings, so worth drops don’t suggest insolvency in the event that they’ve deliberate for market cycles. 

Well-managed treasuries run stress checks, hold liquidity reserves, and align funding with long-term targets — not like these constructed on short-term worth momentum.

“It’s additionally necessary to notice that the mNAV declines we’re seeing aren’t purely a mirrored image of current Bitcoin worth weak spot, although BTC has since recovered. Many of these corporations have been initially priced for perfection throughout their early accumulation phases, when market sentiment and FOMO drove their market caps far forward of fundamentals. As such, when BTC costs corrected, their mNAVs naturally reacted extra sharply, reflecting the identical volatility that propelled their earlier features,” he added.

He famous that as the market matures and company stability sheets align extra carefully with Bitcoin’s underlying fundamentals moderately than speculative valuations, volatility is probably going to stabilize over time.

Timot Lamarre, Head of Market Research at Unchained, argued that Bitcoin treasuries are basically totally different from altcoin treasuries, which regularly exploit retail buyers. 

“Even for bitcoin treasury corporations, it needs to be anticipated that for the overwhelming majority of corporations, mNAV will development towards one over time,” he stated.

Lamarre additionally identified that a couple of companies could thrive by giving oblique Bitcoin publicity to buyers who can’t purchase it straight. Still, finally, the most profitable treasuries might be people who maintain Bitcoin straight — with out leverage or complexity.

How Much Risk Do Declining mNAVs Pose to Corporate Balance Sheets?

Nonetheless, if mNAVs proceed to decline, might that stress firms to sell their holdings and, in flip, set off market volatility? According to specialists, that is certainly doable. Speaking to BeInCrypto, Fabian Dori, CIO at Sygnum Bank, stated,

“Basically, this danger exists. The probability of it taking place primarily is determined by the debt structuring of the particular person corporations. To monitor the probability the market attaches to a ‘pressured de-leveraging’ situation, it’d for instance, be fascinating to analyze the credit score unfold of (convertible) bonds relative to the broader market and relative to friends, or the implied volatility time period construction and skew for choices on the firm,” he talked about.

In addition, Lamarre detailed that the main contributors in the Bitcoin treasury area — equivalent to Strategy — preserve sturdy collateral positions and will stand up to even a big decline in Bitcoin’s worth with out being pressured to liquidate. Smaller companies, nonetheless, that tackle extreme leverage might spark short-term turbulence in the market.

“The bigger danger lies with the treasury firm’s stockholders moderately than bitcoin holders. Bitcoin holders can trip out bear markets with bitcoin held in self-custody, the place corporations can go beneath. Past catalysts for enormous bear markets have been fraud and hacks,” the analyst famous.

Miah agreed, saying that some pressured promoting might occur at the margin. Nevertheless, it’s unlikely to threaten the system until a significant participant, equivalent to Strategy, confronted a default.

In his view, the present market is definitely serving to to strengthen the ecosystem by recrepricing danger the place governance was weak and capital mismatched. Well-structured companies can deal with short-term stress with out disrupting the market, making this extra of a refinement part than a credit score disaster.

Is Corporate Exposure to Digital Assets Jeopardizing Shareholder Value? 

Beyond declining mNAVs, digital asset treasuries additionally face the danger of their inventory performance being closely correlated with crypto market actions, which might lead to volatility. 

Dori highlighted {that a} digital asset treasury’s inventory worth is pushed by volatility in its underlying token each day. Structurally, this makes DATs a ‘high-beta wager’ to the belongings they maintain.

“From a longer-term perspective, every DAT wants to create worth to shareholders to justify a sustainable mNAV premium. This idiosyncratic worth or danger is pushed by company-specific selections: issuance self-discipline, capital construction, money stream planning, operational execution, and many others,” he added.

However, Miah harassed that fairness weak spot amongst DAT companies stems extra from how their capital and publicity are structured than from Bitcoin’s worth movements alone. Investors can tolerate volatility after they belief an organization’s stability sheet — what they reject is dilution and reactive financing.

“The distinction between sturdy and weak performers lies in treasury governance, how leverage, capital raises, and timing are managed. A well-structured firm can climate worth swings whereas sustaining investor confidence,” he talked about.

Furthermore, Lamarre believes that Bitcoin treasury corporations could also be interesting to merchants usually drawn to the high-risk nature of altcoins. According to him,

“Bitcoin’s downward volatility normally follows a euphoric upside part, which we have now but to see on this cycle. Altcoins seem to be persevering with their decline in bitcoin phrases. Perhaps these bitcoin treasury corporations are scratching the itch for merchants who’re usually attracted to the danger of altcoins. It could also be a poor technique that has led to inventory costs happening, however the recreation they’re making an attempt to play is difficult. Once you perceive Bitcoin, the thought of shopping for an organization’s inventory for publicity feels redundant. Holding your individual bitcoin reduces counterparty danger in a approach fairness can’t.”

Another concern stems from the promoting stress that arises when PIPE shares enter the market. For instance, BeInCrypto recently reported that KindlyMD’s inventory plunged 55% following the launch of new shares into circulation.

The PIPE Dilemma

CryptoQuant found that Bitcoin treasury companies elevating funds by means of PIPE applications noticed their share costs drop by 42% to 97%, primarily due to precise or anticipated promoting by PIPE buyers. It additionally warned that some shares might fall up to one other 50%, as they nonetheless commerce above their PIPE providing costs.

Nonetheless, Miah defined that PIPEs or fairness choices should not inherently problematic — the problem arises when they’re used reactively moderately than strategically.

“When fairness raises are paired with risk-managed Bitcoin publicity, the construction could be accretive. But with out a clear capital allocation plan or investor communication, it erodes belief. The problem isn’t the use of capital markets; it’s how the capital stack is engineered,” the government remarked.

Lamarre emphasised that the most safe treasury method stays easy — generate earnings and allocate a portion to Bitcoin. When companies problem new fairness solely to buy extra Bitcoin, shareholders ought to query whether or not they’d be higher off holding the asset straight.

He revealed that whereas monetary engineering can profit buyers unable to maintain Bitcoin themselves, historic outcomes present that such methods not often outperform Bitcoin’s personal returns. For most buyers, the cryptocurrency’s constant 60%+ compound annual development fee makes the case for direct ownership compelling.

What It Takes to Build a Successful Digital Asset Treasury

While the dangers are clear, they don’t invalidate the Digital Asset Treasury mannequin. Strategy stands out as a notable instance.

Miah detailed that the agency’s success was not nearly conviction in Bitcoin however execution. The firm paired perception with sound structure: recurring income, long-dated financing, and governance alignment. 

Many of its imitators, he famous, noticed the headlines however missed the basis. They tried replicating the publicity with out matching liquidity, cash flow, or investor profile.

“A sustainable Bitcoin treasury isn’t about mirroring technique; it’s about matching design to capability. Firms that method this as a capital allocation drawback, not a branding train, are evolving the mannequin appropriately,” the GoMining Institutional government disclosed to BeInCrypto.

He underlined that digital belongings amplify no matter is already in place. An organization with secure working money stream can use Bitcoin as productive collateral — a device to improve yield or diversify reserves. 

However, crypto publicity solely magnifies monetary stress for companies with weak fundamentals. Treasury methods succeed when backed by constant income, predictable financing, and robust danger controls. They fail when handled as substitutes for development.

This precept is particularly related in at present’s surroundings, the place Bitcoin operates inside a mature institutional ecosystem of ETFs, custodians, and controlled derivatives. That infrastructure makes Bitcoin uniquely appropriate as a balance-sheet asset. Broader digital-asset methods typically lack the identical liquidity depth or coverage readability, limiting their integration into conventional treasury frameworks.

Lamarre shared that the basis of any sustainable treasury is profitability and prudent capital administration.

“Profitability is important to sustainably rising bitcoin treasuries. This applies to each people and public corporations. The purpose is to earn greater than you spend. Bitcoin reinforces fundamentals which have been misplaced in a fiat financial system. Instead of emphasizing development over profitability, Bitcoin rewards effectivity and disciplined saving for the future,” he claimed.

Nevertheless, in accordance to him, there could also be room for choose Bitcoin treasury corporations in numerous jurisdictions the place regulatory or capital allocation limits stop direct funding. However, the broader market doesn’t want an extra of such entities.

“Bitcoin stands as the strongest, long-term financial savings car for people and public entities alike. Diluting shareholders to purchase extra bitcoin has to present worth on the different finish of that commerce. What are you offering to the market that they’ll’t discover elsewhere,” he acknowledged

(Micro) Strategy Started a Trend — But Can Others Survive?

Thus, whereas launching a Digital Asset Treasury could also be easy, surviving in the market requires way more. According to Miah, present market situations distinguish between treasuries structured for sustained conviction and people pushed by momentum.

“The subsequent Bitcoin bear cycle will possible wipe out a portion of weaker gamers, significantly these in the broader multi-asset DAT area, abandoning better-capitalized and operationally disciplined companies. The steepest drawdowns have a tendency to happen outdoors Bitcoin publicity. Bitcoin treasuries profit from the asset’s scale, liquidity, and established derivatives markets, which permit for much higher danger administration. The identical can’t be stated for a lot of companies concentrated in smaller tokens, the place liquidity dries up shortly,”  Miah commented.

Dori additionally famous that weaker DAT companies may very well be ‘weeded out.’ However, the decisive issue is just not essentially measurement — although bigger gamers do profit from cheaper capital and deeper liquidity — however moderately their means to create sustainable worth past a easy buy-and-hold technique in the underlying token.

Annelise Osborne, Chief Business Officer at Kadena, warned that historical past affords lots of cautionary examples — from the collapse of Long-Term Capital Management and Bear Stearns to Lehman Brothers, AIG, and Enron. The frequent thread throughout these failures was advanced monetary constructions, extreme leverage, and overexposure to risky markets. Derivatives, algorithms, and danger fashions work — till they don’t.

According to her, DATs face related structural vulnerabilities. Many lack significant money stream or operational income, relying as a substitute on the market worth of the cryptocurrencies they maintain or the yield these belongings generate. Digital belongings, by nature, are risky and susceptible to sharp worth swings. 

While Bitcoin’s volatility has moderated as institutional holders take long-term positions, most different cryptocurrencies lack the identical depth of demand and liquidity.

“DAT defi methods embrace vital danger to improve the return typically utilizing leverage on leverage. Market disruption might trigger a home of playing cards to collapse. Also, markets are interconnected so can transfer collectively. When a market seizes, there could be restricted to no liquidity. Sales may trigger vital drops in worth. It may very well be a race to the backside whereas unwinding a DAT,” she informed BeInCrypto.

Despite this, Osborne outlined that DATs managed by skilled, compliant asset managers with sturdy danger controls are extra possible to endure.

The Future of DATs

Finally, the specialists additionally shared their long-term outlook for DATs. Sygnum’s CIO advised that DATs might be seen as an necessary step in the broader institutionalization of digital belongings over the subsequent two to three years.

“Right now, they supply buyers with handy, listed-market entry and pioneer new income and financing rails. In the medium- to long-term, the enterprise mannequin of these corporations is probably going to evolve over time to preserve a sustainable mNAV premium. For instance, they may get extra deeply engaged in supporting the ecosystem of the token they’re invested in to develop further income sources,” Dori disclosed to BeInCrypto.

Still, Miah envisions a clearer divergence forward between Bitcoin-focused and multi-asset treasuries. In his view, Bitcoin treasuries will emerge as the most sustainable mannequin inside the subsequent two to three years. 

He forecasted that Bitcoin’s scale, liquidity, and rising regulatory readability make it uniquely suited as a company reserve asset. Meanwhile, multi-asset treasuries are possible to proceed going through structural challenges.

In conclusion, DATs mark an necessary part in the institutional adoption of crypto, however not all will endure. Firms with disciplined governance, sustainable financing, and long-term conviction are finest positioned to thrive. Others constructed on leverage or short-term hypothesis danger turning into the subsequent casualties of market correction.

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