Opinion: The DAT Bubble has largely burst, and companies need to hold their positions and wait for a rebound.

December 6th: CoinDesk reported that James Butterfill, Research Director at crypto asset management firm CoinShares, noted in a report the Digital Asset Treasury (DAT) bubble has essentially burst. Companies that once viewed token treasuries as a growth engine—trading at 3 to 10 times their market value net asset value (mNAV) by summer 2025—have now fallen to around 1x or lower, marking a sharp correction in their trading model. The next trend hinges on market behavior: either price declines spark disorderly selling, or firms hold positions and wait for a rebound. Butterfill leans toward the latter, citing improved macro conditions and a potential December interest rate cut that would support cryptocurrencies. He highlighted a bigger structural challenge: a group of firms previously amassed large treasury assets in the open market but failed to build sustainable businesses, causing reputational damage. Today, investors are less tolerant of equity dilution without actual operating income or excessive concentration in single assets. Signs show stronger companies are now integrating Bitcoin into rigorous treasury and forex management strategies, signaling a healthier trajectory.