Is the $100 Billion Crypto Treasury Surge Reaching Its Limits?
How digital asset treasuries fueled this summer’s crypto rally — and why that buying spree may be slowing down now.
Cryptocurrency prices rocketed higher this summer, with Bitcoin, Ethereum, and Solana leading the charge. Macro trends played a role, but one major driver was the rise of Digital Asset Treasuries (DATs). These public companies raised nearly $100 billion in 2025 alone, snapping up huge chunks of BTC, ETH, and other coins. Their aggressive buying provided powerful demand that helped propel markets. But lately, that buying wave seems to be losing steam. Are these treasury firms hitting their limits or pivoting? This article breaks down the origins, impacts, and recent shifts in crypto treasuries — what’s driving momentum, what’s causing the slowdown, and what it means for investors.
What Are Digital Asset Treasuries (DATs)?
Digital Asset Treasuries, or DATs, are public companies that raise capital specifically to invest in cryptocurrencies like Bitcoin and Ethereum. The model started with MicroStrategy in 2020 when CEO Michael Saylor converted much of his company’s cash reserves to BTC. This bold move initially seemed risky, but as Bitcoin skyrocketed, MicroStrategy’s stock surged and attracted investor interest. For many institutions like pension funds and family offices that can’t hold Bitcoin directly, investing in these DAT stocks became an indirect way to gain Bitcoin exposure.
Soon, others followed MicroStrategy’s playbook. Within a few years, 150+ companies raised close to $100 billion collectively to stack BTC, ETH, Solana, and even niche altcoins on their balance sheets. By mid-2025, roughly 4.5% of Bitcoin’s total supply was held on corporate balance sheets.
Why Were Crypto Treasuries Such a Big Deal?
- Relentless Buying Pressure: In 2024 and early 2025, these treasury companies aggressively bought crypto. For example, 26 firms adding BTC in June alone shows the breadth of demand.
- Price Support: Their purchases helped sustain rallies and pushed prices upward beyond typical market demand.
- New Market Access: Investors who couldn’t buy crypto directly gained exposure through these stocks, helping to expand crypto investing.
- Yield Opportunities: Some DATs started staking Ethereum or using DeFi yields, offering compounded returns that traditional ETFs can’t tap.
Signs the Treasury Buy Wave is Slowing
Despite this impact, several cracks have appeared in the crypto treasury playbook:
1. Premium Compression on DAT Stocks
During the hype phase, many DAT stocks traded at premiums well above their Net Asset Value (NAV). Investors paid more for the stock than the underlying crypto assets were worth, banking on future growth.
Today, many companies trade below NAV, meaning their shares are discounted vs. their crypto holdings. This kills their ability to raise more capital, freezing the flywheel that fueled buying.
2. Increased NASDAQ Scrutiny
The NASDAQ exchange has tightened rules around companies raising money solely to buy crypto. Shareholder votes, additional disclosure requirements, and regulatory hurdles slow fundraising — especially for smaller or newer DATs.
3. Warnings About Debt-Fueled Buying
Some treasury companies take on significant debt to fund crypto purchases. If crypto prices drop or refinancing becomes difficult, they may have to sell assets, triggering price declines. Coinbase flagged this risk, noting these firms can be “one-trick ponies” that magnify downturns.
This dynamic is similar to the old Grayscale Bitcoin Trust (GBTC) premium flip, a cautionary precedent signaling when the frenzy phase peaks.
Looking at Major Players: Who’s Still Buying?
- MicroStrategy: Holds over 500,000 BTC. Though their stock has been shaky after issuing shares below the 2.5x NAV threshold, they continue buying Bitcoin opportunistically.
- Bitmine (Ethereum Treasury): Holds 2 million ETH and aims for 5% of total supply. Trades above NAV and plans to stake ETH, which creates yield, but new buys have slowed.
- Sharp Link Gaming: Recently slipped below NAV, halting equity raises. They are buying back their own stock to support share value but not expanding crypto assets.
- MetaPlanet (Japan): Continues raising funds through zero-interest bonds and creative financing. With strong local investor support, they maintain a runway to keep stacking BTC.
Broadly, some companies remain active, others slow, and a few are stalled. The treasury frenzy is cooling but not finished yet.
Could the Trend Still Continue?
There’s a strong counterargument that digital asset treasuries aren’t done. Institutions like Fidelity, Citadel 72, and others still back ETH treasury vehicles and new DAT funds. Unlike ETFs, these companies can stake ETH and deploy idle cash into DeFi strategies, earning 5–10% yields that justify premiums and growth potential.
Global markets, especially outside the US, seem more open too — meaning the NASDAQ crackdown might slow US firms but not stop global treasury growth.
Answer Box: What Caused the $100 Billion Surge in Crypto Treasury Buying?
The $100 billion surge happened because over 150 public companies raised funds specifically to buy Bitcoin, Ethereum, Solana, and other cryptocurrencies. Starting with MicroStrategy’s bold 2020 move, these Digital Asset Treasuries created a powerful new class of crypto demand that sharply raised prices through 2024 and 2025. ---
Data Callout: Corporate Bitcoin Holdings Hit 4.5% of Supply
By mid-2025, more than 4.5% of all Bitcoin supply was held by public treasury companies. This significant concentration shows just how much buying power these firms wielded and how their actions directly impacted crypto markets.
Risks / What Could Go Wrong?
- Capital Raising Challenges: If DAT stocks keep trading below NAV, they struggle to fund new buys.
- Regulatory Pressure: Increased oversight can raise costs, complicate operations, or limit new entrants.
- Debt Risks: Levered buying amplifies gains but causes forced selling in downturns.
- Market Sentiment Shift: If crypto prices stall or fall, treasury companies may cut back buying, removing vital demand support.
- Competition with ETFs: As regulated crypto ETFs improve staking and yield strategies, DAT appeal might erode.
Actionable Summary
- Digital Asset Treasuries raised nearly $100 billion in 2025 to aggressively buy BTC, ETH, and altcoins.
- These firms drove large-scale demand, pushing crypto prices higher through mid-2025. - Recently, buying has slowed due to premium compression, regulatory hurdles, and risk warnings.
- Some big players like MicroStrategy continue buying opportunistically; others have stalled or shifted tactics.
- Institutional involvement and yield opportunities could sustain the trend longer term — especially globally.
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FAQ
Q: What is a digital asset treasury (DAT)?
A: A public company that raises capital to buy and hold cryptocurrencies like Bitcoin and Ethereum on its balance sheet.
Q: Why did MicroStrategy’s move in 2020 matter?
A: MicroStrategy’s large Bitcoin purchase created a blueprint for others and provided a stock-based way to gain Bitcoin exposure before ETFs existed.
Q: Why are DAT stocks trading below their crypto asset value (NAV)?
A: After the hype, market skepticism, regulatory scrutiny, and price volatility pushed stock prices below the crypto assets they hold, reducing fundraising ability.
Q: How do staking and DeFi yields help DAT companies?
A: They allow treasury companies to earn additional returns on held crypto, offsetting costs and potentially supporting stock premiums.
Q: Is the crypto treasury buying trend over?
A: Not entirely — while growth has slowed and some challenges exist, major players and institutions are still involved, and global markets remain open.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrency investments carry risk, including volatility and regulatory uncertainty. Always conduct your own research.
By Wolfy Wealth - Empowering crypto investors since 2016
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