Digital Asset Treasuries (DATs) are struggling due to a 95% drop in weekly inflows since July 2025 highs, amid weakening market sentiment and sharp price declines. While Bitcoin has fallen only 10%, most DAT-linked assets have dropped 40% to 90%, pressuring managers to pause purchases.
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Weekly inflows to DATs have plummeted 95% from July peaks, signaling reduced institutional appetite.
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Broader crypto market weakness, including tariff impacts, has eroded confidence in DATs as hedges.
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Performance data shows DAT assets down 40-90%, compared to Bitcoin’s 10% decline, per analyst reports.
Discover why Digital Asset Treasuries are facing steep declines in 2025. Explore inflows drop, performance gaps with Bitcoin, and future outlook for institutional crypto strategies. Stay informed on DAT trends today.
What Are Digital Asset Treasuries and Why Are They Struggling in 2025?
Digital Asset Treasuries (DATs) represent corporate strategies where companies allocate funds to cryptocurrencies like Bitcoin, Ethereum, and Solana as part of their balance sheet management. In 2025, these treasuries are struggling due to a dramatic 95% reduction in weekly inflows over the past four months, coupled with asset values plunging far below purchase prices. This shift follows a period of hype, but current market conditions have exposed vulnerabilities in the model.
How Does the Performance of DATs Compare to Bitcoin?
Digital Asset Treasuries have underperformed Bitcoin significantly in recent months. According to data from market analysts, while Bitcoin’s price has declined by approximately 10% from its recent highs, most DAT-linked assets, including those associated with entities like Metaplanet and Naka, have seen losses ranging from 40% to 90%. This disparity arises as DATs often bought at peak prices, leading to premiums evaporating and shares trading below average acquisition costs.
Expert analyst Adam Back highlighted this gap, noting, “Most major DATs are now underwater on their crypto holdings, with equity values dropping even steeper.” Supporting statistics from on-chain trackers show that institutional DAT portfolios hold substantial positions in Bitcoin, Ethereum, and Solana, but forced sales could amplify market pressure if liquidity needs arise. Short sentences underscore the urgency: Inflows have stalled. Confidence is waning. Recovery remains uncertain.
Source: X
The chart illustrates the widening performance chasm, with Bitcoin maintaining relative stability against the steeper DAT declines. Corporate treasuries that adopted this approach viewed digital assets as a hedge against inflation and a growth driver, but recent tariff policies and market crashes have tested that thesis. As a result, managers face dilemmas: halt new buys or risk further erosion through discounted stock issuances.
Source: X
Frequently Asked Questions
What Caused the 95% Drop in DAT Inflows Since July 2025?
The sharp decline in Digital Asset Treasury inflows stems from weakened market sentiment following a tariff-driven crypto crash. Institutional buyers, previously optimistic about crypto as a treasury asset, have pulled back amid price volatility and eroding premiums. Data from blockchain analytics firms indicates weekly allocations fell from highs near $100 million to under $5 million by late 2025.
Will Digital Asset Treasuries Recover in the Coming Months?
Recovery for Digital Asset Treasuries depends on broader crypto market stabilization and renewed institutional confidence. Analysts suggest that if Bitcoin surpasses key resistance levels, DATs could see gradual inflows resume, but persistent macroeconomic pressures like tariffs may prolong the pause. Monitoring on-chain metrics and corporate disclosures will provide early indicators of any turnaround.
Key Takeaways
- Declining Inflows Signal a Cooling Phase: Weekly allocations to DATs have dropped 95% since July 2025, reflecting reduced enthusiasm amid market downturns.
- Performance Lag Behind Bitcoin: DAT assets have fallen 40-90%, compared to Bitcoin’s 10% dip, highlighting risks of high-entry purchases.
- Pressure on Managers: With holdings underwater, DAT operators must decide on pausing buys or navigating potential liquidation risks to avoid market-wide selling.
Conclusion
Digital Asset Treasuries, once a beacon for institutional crypto adoption, are navigating a challenging period in 2025 marked by slashed inflows and substantial underperformance relative to Bitcoin. As corporate strategies reassess amid tariff impacts and price volatility, the resilience of the DAT model will be tested. Investors should track upcoming earnings reports and market data for signs of stabilization, positioning themselves for potential rebounds in this evolving landscape.
