A new wave of digital asset treasury (DAT) companies — publicly listed firms that hold cryptocurrencies on their balance sheets — is moving beyond Bitcoin and Ether into smaller, less liquid tokens, alarming regulators and investors alike.
According to DLA Piper, there are now over 200 DATs with a combined market capitalization of $150 billion, tripling from a year ago. Many are micro-cap firms using token holdings to attract attention and boost valuations — a strategy now under strain as Bitcoin cools and volatility returns.
🔹 The Emerging Shift
- Once centered on Bitcoin stockpiling, DATs such as Greenlane, OceanPal, and Tharimmune are now investing in BERA, NEAR, and Canton Coin.
- Analysts warn that less-liquid tokens magnify downside risk during market sell-offs.
“DATs are expanding toward more exotic cryptocurrencies, where risk is far higher,” said Cristiano Ventricelli, Senior Analyst, Moody’s Ratings.
🔹 PIPE Financing Fuels the Trend
- Since April, 40+ DATs have raised $15 billion through private placements (PIPEs) — with only five focused on Bitcoin.
- These deals, backed by Galaxy Digital, Pantera Capital, Kraken, and others, give firms quick cash but often dilute shareholders and heighten volatility once lock-ups expire.
- When U.S.–China tariff tensions flared in October, several DATs plunged 10–15% in a day.
🔹 Investor Fallout
- Retail holders have lost an estimated $17 billion this year as many DATs now trade below their net asset value (NAV).
- DATs collectively control 4% of all Bitcoin, 3.1% of Ether, and 0.8% of Solana, meaning their behavior can move crypto prices.
- Some firms, including ETHZilla and Forward Industries, are repurchasing shares to restore investor confidence.
🔹 Industry Outlook
Analysts expect consolidation ahead as weaker players exit and surviving DATs diversify.
Executives emphasize that long-term success will depend less on token speculation and more on portfolio strategy, treasury discipline, and blockchain integration.
“If a DAT just sits back and buys tokens, long-term you’re going to get absolutely decimated,” said Marius Barnett, Chairman of SUI Group.