Crypto asset management firm CoinShares (CS) said the digital asset treasury (DAT) bubble has largely burst, with some companies trading at 3x to 10x their market net asset value (mNAV) in the summer of 2025 and now back to about 1x or less, a sharp reset for a trade that once priced token treasuries as growth engines.
James Butterfill, director of research at CoinShares, wrote in a blog post on Thursday that the next move depends on behavior: Either the price decline triggers a disorderly sell-off, or companies hold balances and wait for a rebound.
Butterfill said he favors the latter, citing an improving macro backdrop and the possibility of a rate cut in December that could support cryptocurrencies.
mNAV compares a company’s enterprise value (EV), which is the company’s market capitalization plus debt minus any cash, to the market value of its Bitcoin holdings. Strategy is the largest corporate holder of Bitcoin, with a current mNAV of approximately 1.13.
Butterfield said the bigger challenge is structural. After a wave of companies using the public markets to build excess capital without building a lasting business, damaging credibility, investor tolerance for dilution and single-asset concentration without real operating income is declining.
The report said there are early signs of healthier practices as powerful companies incorporate Bitcoin into strict financial and foreign exchange management.
Butterfill said the DAT concept is not dead but is being reclassified, with investors likely to draw clearer lines between speculative treasury wrappers, disciplined treasury strategies, token investment vehicles and strategic companies.
The report adds that the next generation will require fundamentals, trusted businesses, tighter governance and realistic expectations to embrace digital assets as a tool rather than the be-all and end-all.
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