Digital Asset Treasury Model Under Pressure Amid Falling Valuations and ETF Competition
Crypto and Bitcoin treasury companies is increasingly pessimistic as the market heads toward 2026. Industry executives warn that most digital asset treasury (DAT) firms may not survive, citing falling share prices, overcrowding, and an unsustainable business model built largely on asset accumulation rather than financial strategy.
Crypto treasury companies expanded rapidly in 2025, offering public market investors indirect exposure to Bitcoin and major cryptocurrencies. As Bitcoin rallied to record highs in October, capital flooded into these firms. However, the subsequent crypto market downturn erased much of those gains, pushing many treasury company valuations well below expectations.
Executives note that maintaining a market net asset value (mNAV) premium has become increasingly difficult. Companies holding altcoins are viewed as the most vulnerable, as price volatility and weaker investor demand make it harder to justify valuations above the value of their underlying holdings.
Market participants argue that simply holding Bitcoin is no longer sufficient. Treasury firms that relied on crypto accumulation as a marketing strategy have struggled, particularly when forced to sell assets to cover operating expenses.
By contrast, companies that integrate yield-generating strategies, such as on-chain lending, collateralization, or structured liquidity management, are seen as better positioned to withstand downturns. Treating Bitcoin as actively managed digital capital, rather than a passive store of value, is increasingly viewed as essential.
Another major challenge is the rise of crypto exchange-traded funds, which offer regulated, transparent exposure and, in some cases, yield components. As investors gravitate toward ETFs, treasury firms are being pushed to adopt institutional-grade transparency, compliance, and integration with traditional finance systems.
Without structural evolution, executives warn that most crypto treasury companies will disappear, leaving only a small number with disciplined financial frameworks and diversified strategies.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.