This year’s financing has already exceeded $20 billion, and the model has become a "red ocean." How much ammunition do "digital currency treasury companies" have left?

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Digital asset treasury companies have seen an unprecedented financing boom this year. After absorbing over $20 billion in massive fundraising, the industry is rapidly moving from a “blue ocean” to a highly competitive “red ocean.” As the majority of treasury company stocks fall below their net asset value and liquidity pressures emerge, the curtain may have been raised for industry consolidation.

As the hottest segment in this year’s cryptocurrency market, Digital Asset Treasury (DAT) companies are seeing an unprecedented financing wave: According to the latest data from The Block, DAT companies have raised over $20 billion so far in 2025, a new record, with nearly $10 billion raised in July alone.

However, the latest market trends and signals indicate that the DAT financing boom may have peaked and premiums are being compressed. According to The Block’s data, many DATs are trading at or even below their net asset value. Liquidity is also becoming a pressure point for DATs.

As pointed out in a previous article by Jianshi: Coinbase stated clearly in its latest research report that the era of easy money and guaranteed net asset value (NAV) premiums is over. The significant premium enjoyed by early movers like MicroStrategy is disappearing as competition intensifies, execution risks increase, and regulatory restrictions tighten—resulting in compressed NAV multiples.

Facing these challenges, leading DAT companies are actively seeking differentiated strategies for survival, including boosting liquidity. Funds are also shifting to new tracks. Analysts point out that as the DAT track reaches saturation, capital is searching for the next hot topic, with DeFi (Decentralized Finance), Real-World Assets (RWA), and stablecoins regaining attention.

Financing frenzy peaks, premium era ends

The digital asset treasury model saw explosive growth in 2025. According to data, the cumulative fundraising by DAT companies has surpassed $20 billion so far this year. In July alone, they raised nearly $10 billion—about half the total raised so far.

According to a previous article by Jianshi, 154 publicly listed U.S. companies have raised about $9.84 billion this year for cryptocurrency purchases. However, the inflow of capital has quickly spawned fierce competition. David Duong, Head of Research at Coinbase, previously pointed out:

The market has entered a "player versus player" competition stage. Simply copying MicroStrategy’s playbook is no longer enough to guarantee success. The valuation premium enjoyed by early entrants has been significantly compressed due to increasing competition, heightened execution risks, and tightening regulatory constraints.

Cosmo Jiang, General Partner at Pantera Capital, said, "The market will soon exit the initial forming stage of DAT and move into a phase of execution, expansion, and possibly consolidation."

For massive fundraising rounds of $500 million to $1 billion or more, only a handful of large-cap and highly volatile companies can realistically raise such funds.

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

Net asset value discount becomes widespread, liquidity faces difficulty

As competition heats up, two core challenges have become severe tests for DAT companies: net asset value (NAV) discounts and liquidity.

According to The Block’s data dashboard, many DATs are trading below their NAV. Ray Hindi, co-founder of L1D AG, said, “Discounts were bound to happen,” and predicted that the market would see consolidation by 2026.

Richard Galvin, Executive Chairman of Digital Asset Capital Management, agreed, adding that well-managed but cheaply priced DATs could become acquisition targets.

Michael Bucella, co-founder of Neoclassic Capital, pointed out that if a company can issue shares at 1.25x NAV while acquiring at 0.7x NAV, there’s an immediate accretive effect; but he warned that this strategy is premised on the target tokens being highly liquid, otherwise efforts to bridge the discount may spark a “death spiral” in assets.

Liquidity is also another pressure point for treasury companies. Low trading volumes limit their ability to raise funds through market-priced offerings or at-the-market offerings, leading to sustained discounts and making weaker firms vulnerable to takeovers. Brian Rudick, Chief Strategy Officer at Solana ecosystem DAT company Upexi, pointed out:

Low trading volumes restrict companies’ ability to raise funds via “at-the-market offerings,” otherwise it would impact their stock price.

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

Differentiation for survival: Seeking new strategies in the "red ocean"

Faced with challenges, leading DAT companies are actively seeking differentiated strategies for survival.

Brian Rudick revealed that most of Upexi’s investment portfolio consists of Solana tokens with lock-up periods, purchased at roughly a 15% discount, mainly from over-the-counter platforms such as BitGo and some investors who acquired assets during the FTX bankruptcy. These assets will unlock monthly before 2028 and can generate about 8% in staking returns.

He explained, “Over time, the 15% discount will tend toward zero. If we convert that 15% discount into an equivalent yield, we can approximately double the staking yield.”

Enhancing liquidity is another key direction. Samantha Bohbot, Partner at RockawayX, said the development of options markets for underlying assets is needed to build DAT stock liquidity.

As the options market deepens, market makers can engage in delta hedging, thereby creating a “virtuous cycle” where both the option and spot liquidity complement each other.

However, investors such as Richard Galvin believe that in the long term, DAT’s success depends more on the long-term trajectory of their underlying tokens rather than on short-term trading volume. In addition, regulators such as the Nasdaq are reportedly increasing scrutiny of DATs, bringing new uncertainties to the sector.

Funds shift to new tracks, DeFi and stablecoins draw attention

As the DAT track becomes increasingly crowded, venture funding is already shifting focus.

Many investors believe that as expectations of the Federal Reserve rate-cutting cycle approach, Decentralized Finance (DeFi) will regain momentum. Quynh Ho, Head of Venture Investments at GSR, said:

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

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

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

Risk Warning and DisclaimerThere are risks in the market, and investments should be made with caution. This article does not constitute individual investment advice, nor does it take into account any user’s specific investment objectives, financial situation, or needs. Users should consider whether any opinions, views, or conclusions in this article are appropriate to their specific situation. Investments made on this basis are at your own risk. ```