CoinShares, a firm specializing in crypto asset management, has announced that the digital asset treasury (DAT) bubble has mostly deflated. Many companies that traded at valuations three to ten times their market net-asset value (mNAV) during the summer of 2025 have seen their values return to around 1x or lower, indicating a substantial correction for what was previously viewed as a thriving trading model for token treasuries.
The future direction now depends on market behavior: whether declining prices trigger a chaotic sell-off or if companies opt to retain their assets in hopes of a market rebound, as noted by CoinShares’ head of research, James Butterfill, in a Thursday blog post.
Butterfill expressed a preference for the latter scenario, pointing to a more favorable macroeconomic environment and the potential for a December interest rate reduction that might benefit the crypto market.
mNAV is a metric that compares a company’s enterprise value (EV), which includes market capitalization plus debt minus cash, against the market value of its bitcoin assets. Strategy, the leading corporate bitcoin holder, currently has an mNAV of approximately 1.13.
According to Butterfill, the more significant issue is structural. Investor appetite for dilution and for holding single-asset concentrations without substantial operating revenue is diminishing. This follows a trend of companies utilizing public markets to significantly inflate treasuries without developing sustainable business models, which has undermined their credibility.
However, there are early indicators of a more balanced approach, as robust companies incorporate bitcoin into disciplined treasury and foreign exchange management strategies, as stated in the report.
The DAT model is not entirely defunct but rather undergoing a reclassification. Investors are likely to differentiate between speculative treasury frameworks, disciplined treasury management, token investment vehicles, and strategic corporate holdings, as Butterfill explained.
The upcoming generation will necessitate a focus on fundamentals, credible business practices, stricter governance, and pragmatic expectations, viewing digital assets as a tool rather than the sole focus, the report concluded.
Read more: Is the Bitcoin Digital Asset Treasury Model Broken? Architect Partners Says No
