The financing this year has exceeded US$20 billion, and the model has become a

Source: Wall Street CN  

Digital Asset Treasury (DAT) companies have witnessed an unprecedented funding boom this year. After attracting over $20 billion in massive financing, the industry is rapidly shifting from a "blue ocean" (untapped market) to a highly competitive "red ocean" (saturated market). As the stock prices of most DAT companies fall below their net asset value (NAV) and liquidity pressures emerge, the prelude to industry consolidation may have already begun.  

As the hottest track in the 2025 cryptocurrency market, DAT companies have ushered in an unprecedented funding wave: According to the latest data released by The Block, DAT companies have raised over $20 billion so far in 2025, a record high—with nearly $10 billion raised in July alone.  

However, the latest market trends and signals indicate that DAT’s funding boom may have peaked, and premiums are shrinking. According to The Block, the trading prices of many DATs are now at or below their NAV. In addition, liquidity has become a pressure point for DATs.  

As previously noted in Wall Street CN’s articles: Coinbase clearly stated in its latest research report that the era of easy profits and guaranteed NAV premiums has ended. The significant premiums previously enjoyed by early movers like MicroStrategy are disappearing; intensified competition, increased execution risks, and tighter regulatory restrictions have led to compressed NAV multiples.  

Facing these challenges, leading DAT companies are actively pursuing differentiated strategies to survive—including enhancing liquidity—and capital is shifting to new tracks. Analysts point out that as the DAT track becomes saturated, capital is seeking the next growth driver, with areas such as Decentralized Finance (DeFi), Real World Assets (RWA), and stablecoins regaining attention.  

## Funding Boom Peaks; Era of Premiums Ends  

The digital asset treasury model experienced explosive growth in 2025. Data shows that DAT companies have raised over $20 billion in total so far this year. In July alone, financing reached nearly $10 billion, accounting for half of the total.  

As also mentioned in a previous Wall Street CN article, statistics show that 154 U.S.-listed companies have raised approximately $9.84 billion this year to purchase cryptocurrencies. However, the flood of capital has quickly fueled fierce competition. David Duong, Head of Research at Coinbase, previously noted:  

“The market has entered a ‘player-versus-player’ competition phase; simply copying MicroStrategy’s playbook is no longer enough to guarantee success. The valuation premiums enjoyed by early entrants have been significantly compressed due to a combination of intensified competition, increased execution risks, and tighter regulatory restrictions.”  

Cosmo Jiang, General Partner at Pantera Capital, said, “The market will soon exit the initial formation phase of DATs and enter a phase of execution, expansion, and potential consolidation.”  

For massive funding rounds of $500 million to over $1 billion, only a handful of companies with large market capitalizations and volatile characteristics can realistically raise such funds.  

Michael Anderson, Co-Founder of Framework Ventures, pointed out, “For example, Ethereum treasury company Bitmine may be able to do this, but for most companies, the pace of massive financing may be unsustainable.”  

## NAV Discounts Become Widespread; Liquidity Trapped  

As competition intensifies, two core issues have become severe challenges for DAT companies: NAV discounts and liquidity shortages.  

According to The Block’s data dashboard, many DATs are now trading below their NAV. Ray Hindi, Co-Founder of L1D AG, stated that the emergence of discounts was “destined to happen” and predicted market consolidation by 2026.  

Richard Galvin, Executive Chairman of Digital Asset Capital Management, agreed, suggesting that well-managed DATs with low stock prices may become acquisition targets.  

Michael Bucella, Co-Founder of Neoclassic Capital, noted that issuing shares at a 1.25x NAV valuation while acquiring assets at 0.7x NAV could generate immediate value appreciation. However, he warned that this strategy relies on the underlying tokens having high liquidity; otherwise, attempts to close the discount may trigger an asset “death spiral.”  

Liquidity has also become a pressure point for treasury companies. Low trading volumes limit their ability to issue shares through at-the-market offerings or equity lines, leading to persistent discounts and making weaker companies vulnerable to acquisitions. Brian Rudick, Chief Strategy Officer of Upexi (a Solana ecosystem DAT company), pointed out:  

“Low trading volumes restrict a company’s ability to raise funds through methods like ‘at-the-market offerings,’ as this would otherwise impact its stock price.”  

He added that a DAT can only release 1% to 3% of its daily trading volume in tokens to the market without harming its stock price.  

## Differentiated Survival: Seeking New Strategies in the "Red Ocean"  

Facing challenges, leading DAT companies are actively pursuing differentiated strategies to survive.  

Brian Rudick revealed that most of Upexi’s portfolio consists of Solana tokens with lock-up periods, purchased at approximately a 15% discount. These tokens are sourced mainly from over-the-counter (OTC) platforms like BitGo and some investors who acquired assets during FTX’s bankruptcy. These assets unlock monthly until 2028 and still generate approximately 8% staking yields.  

He explained, “Over time, the 15% discount will approach zero. If we convert this 15% discount into an equivalent yield, we can roughly double the staking yield.”  

Enhancing liquidity is another key focus. Samantha Bohbot, Partner at RockawayX, stated that building liquidity for DAT stocks requires the continuous development of options markets for their underlying assets.  

As options markets deepen, market makers can conduct delta hedging, creating a “virtuous cycle” where options and spot liquidity reinforce each other.  

However, investors like Richard Galvin believe that in the long run, the success of DATs depends more on the long-term trajectory of their underlying tokens than short-term trading volumes. Additionally, regulators such as NASDAQ are reportedly tightening scrutiny of DATs, adding new uncertainties to the sector.  

## Capital Shifts to New Tracks; DeFi and Stablecoins Gain Attention  

As the DAT track becomes increasingly crowded, the focus of venture capital has begun to shift.  

Multiple investors stated that with the Federal Reserve’s expected interest rate cut cycle approaching, Decentralized Finance (DeFi) will regain momentum. Quynh Ho, Head of Venture Capital at GSR, said:  

“Fed rate cuts will make DeFi yields look increasingly attractive, which should drive demand for high-yield RWA (Real World Assets) products.”  

Stablecoins are another common theme. Other investors are also focusing on consumer applications in ecosystems, late-stage financing for mature crypto businesses, and selective investments in tokens with strong fundamentals.  

Overall, this paints a picture of a more prudent venture capital market, focusing on use cases with clear product-market fit and large addressable markets.  

## Risk Warning and Disclaimer  

The market is risky, and investment requires caution. This article does not constitute personal investment advice, nor does it take into account the specific investment objectives, financial conditions, or needs of individual users. Users should consider whether any opinion, view, or conclusion in this article is consistent with their specific circumstances. Any investment made based on this article shall be at the user’s own risk.