DATs Face Discounts: Why Most Crypto Treasuries Struggle to Hold Value

Most Digital Asset Treasury Companies now trade at discounts due to illiquidity, high expenses, and structural flaws. Only a few firms with robust strategies and scale can sustain premiums, while most struggle to maintain value.

Digital Asset Treasury Companies (DATs) are increasingly trading at discounts rather than premiums due to structural challenges such as illiquidity, high expenses, and execution risks. Investors typically demand a discount if assets are not immediately accessible, and operational costs further reduce value. The lack of robust redemption mechanisms and less efficient secondary market trading also contribute to discounted valuations, especially as new, more liquid investment products like spot Bitcoin ETFs emerge. While some DATs can achieve a premium by increasing crypto-per-share through strategies like issuing debt, lending crypto, or acquiring assets at a discount, these methods are limited and often introduce additional risks. Scale offers some firms an advantage, but most DATs struggle to maintain growth and value. The consensus among analysts is that only a few exceptional DATs will sustain premiums, while the majority will continue to trade at discounts. Investors are advised to focus on DATs with robust business models and consistent growth in crypto-per-share, and to consider more structurally sound alternatives for crypto exposure.