Bitcoin-focused treasury firms are heading for a shakeout, Bitwise executives say, with only the biggest digital asset treasury (DAT) companies likely to trade at a premium over time.
In posts on X, Bitwise CEO Hunter Horsley and CIO Matt Hougan said size will decide who lasts. They argued larger DATs can raise debt, tap deeper derivatives markets, lend crypto, and buy rivals at discounts—advantages that smaller players lack.
Why this matters
DATs are public companies that hold crypto like Bitcoin on their balance sheets. Investors often compare the companys market value to the dollar value of its coins (similar to net asset value, or NAV). If investors believe management can grow coins-per-share and manage risk, shares can trade above NAV (a premium). If not, shares can trade below NAV (a discount).
Bitwises view: expenses and risk build up the longer a DAT operates. Firms that steadily increase their crypto-per-share could earn premiums. Many others may remain at discounts, get taken over, or fade out.
The numbers behind the boom
- CoinGecko counts 142 DATs, with 76 launched in 2025 alone.
- Most hold Bitcoin. Only 15 hold Ethereum (ETH) and 10 hold Solana (SOL).
- Pure-play DATs follow the Strategy model that started buying BTC in 2020.
Market leaders today
Data from DefiLlama shows Strategy as the largest DAT, with $56.6 billion in BTC at current prices. Tom Lees BitMine ranks next, holding $10.6 billion across ETH and BTC.
Bitwises playbook for survival
Hougans takeaway: scale wins. Big DATs can finance growth, hedge better, and buy struggling competitors. Smaller firms face rising costs and fewer tools to protect against downturns.
Horsley added that its early days. He expects a wave of operating companies to emerge from todays DAT cohort, using their balance sheets to acquire and consolidate crypto-native businesses.
Red flags others are seeing
Bitwise isnt alone. In July, Galaxy Digital compared the DAT surge to past investment trust manias, warning the setup could be fragile if markets turn. Animoca Brands flagged risks from altcoin-heavy treasuries and the danger of activist investors pushing sales when a stock trades below the value of its cryptoknown as market-to-NAV, or mNAV. Breed VC warned that DATs with lots of debt could enter a death spiral in a long downturn, leaving only the strongest to buy the rest.
How we got here
Cheap funding, rising crypto prices, and the popularity of Bitcoin-as-treasury helped seed a rush of new entrants in 2025. The pitch is simple: hold crypto on the balance sheet, grow coins-per-share, and let the market award a premium. The risk is also simple: if the company fails to grow its stack or manage drawdowns, the stock can sink below the value of its holdings.
What to watch next
- Premium vs. discount: Watch how far DAT share prices move above or below their crypto value.
- Debt use: Borrowing can boost returns in bull runs but can crush firms in bear markets.
- Acquisitions: Expect larger DATs to scoop up smaller ones if discounts persist.
- Diversification: Most DATs are BTC-heavy; shifts toward ETH or SOL could change risk and return profiles.
Bottom line
The DAT trend is real, but the easy phase is over. According to Bitwise, only well-capitalized, well-managed players are set to earn premiums and shape the next consolidation wave. For investors, the key is not just which coins a DAT holdsits whether the company can grow coins-per-share without taking on fatal risk.