Recently, the crypto market has continued to be sluggish. Since the "1011 crash," cryptocurrencies like BTC have failed to recover their losses. As of this writing, BTC is trading at $109,279, down 13.33% from its monthly high of $126,080 on October 7.

Meanwhile, DATs (Digital Asset Treasury companies), which once gained significant attention due to favorable crypto market conditions, have suddenly cooled off due to the market shift. This article focuses on the current status of those once-popular DATs, explores the arguments for and against DATs, and examines their future prospects.

I. Current Status of Leading DAT Companies

After the DAT trend emerged, companies from various industries rushed into crypto treasury reserves. As expected, each company announcing a transformation briefly saw its stock price surge, after which most companies' stock prices retreated to previous levels.

1. Strategy
   Strategy is the most high-profile DAT enterprise in the industry. Before August 2020, Strategy was a giant in traditional business intelligence software, providing enterprise clients with data analysis, reporting, and visualization platforms. Its business model was typical of a B2B software company, relying on software sales, licensing, and subscription services for revenue. Strategy's stock price had long fluctuated between $120 and $140.

After transforming into a DAT enterprise, the company's strategic core shifted from intelligent software to the operation and management of a Bitcoin treasury. While continuously buying BTC, it also strengthened its treasury strategy through methods like issuing bonds.

Currently, Strategy holds 640,808 BTC, valued at $70.24 billion, accounting for 3.051% of the 21 million circulating supply.

On October 30, Strategy's total asset size surpassed that of fast-food giant McDonald's; on October 29, the Swiss National Bank disclosed that it holds $213 million worth of stock in the Bitcoin treasury company Strategy. It is reported that the bank's assets under management amount to a whopping $10.5 trillion. But even under such favorable conditions, Strategy's stock price still hasn't returned to its past glory.

Last November, Strategy's stock price reached a high of $473.83. On October 6 this year, its stock price reached a monthly high of $359.69. However, with the "1011 crash" devastating the crypto sphere, Strategy's stock price also fell continuously. As of this writing, it is reported at $254.57, down 29.23% from its monthly high.

Thus, Strategy's stock price has recently moved largely in tandem with BTC, rising and falling with it. However, its nearly 30% pullback is far greater than BTC's approximately 13% drop, and its volatility is even more than double that of BTC.

2. Marathon Digital Holdings Inc.
   Marathon Digital Holdings Inc. was formerly known as Marathon Patent Group. Its core business was acquiring and managing various patents, generating revenue through licensing and litigation. After its transformation in 2020, it became a Bitcoin mining enterprise, focusing all its efforts on building mining farms, deploying miners, increasing hash rate, and obtaining Bitcoin block rewards. This made it an infrastructure provider for the Bitcoin network, with its revenue capability directly linked to the Bitcoin price and hash rate.

Through this transformation, Marathon went from an obscure micro-cap company to a Nasdaq star and industry giant, gaining unprecedented market attention and financing capability. Moreover, before the Bitcoin mining industry was completely monopolized by giants, it rapidly captured market share through aggressive capital operations, establishing its position as the leader in mining.

Currently, Marathon holds 52,850 BTC, valued at $579 million, accounting for 0.252% of the 21 million circulating supply.

During the 2021 bull market, Marathon's stock price climbed to a high of nearly $80, then gradually retreated, mostly fluctuating around $20. On October 15, MARA reached a monthly high of $22.84. However, with the recent overall weakness in the crypto market, MARA is now reported at $17.76, down 22.24% from its monthly high. Its decline is also greater than BTC's 13% pullback.

3. Metaplanet Inc.
   Metaplanet is known as the "Japanese Version of 'Strategy'." Metaplanet's historical core business before transformation was hotel services and management, primarily targeting domestic Japanese tourists. On May 13, 2024, Metaplanet announced that it had declared a transformation in its financial management strategy, adopting Bitcoin as its strategic reserve asset to counter Japan's persistent economic pressures, particularly high government debt levels, prolonged negative real interest rates, and the consequent weak yen.

After the transformation, Metaplanet, following Strategy's example, converted its treasury assets from the continuously depreciating yen (affected by Japan's ultra-low interest rates and currency devaluation) to Bitcoin, using it as a hedge against inflation and a store of value against currency devaluation. Bitcoin became the largest and most important asset on Metaplanet's balance sheet.

Currently, Metaplanet holds 20,136 BTC, valued at $221 million, accounting for 0.096% of the 21 million circulating supply.

In June this year, Metaplanet's stock price rose to a high of 1895 yen, then continued to fall. On October 7, Metaplanet's stock price reached a monthly high of 624 yen, after which it trended lower. As of this writing, it is reported at 491 yen, down 21.31% from its monthly high. Its decline is also greater than BTC's 13% pullback.

4. Coinbase Global, Inc.
   On April 14, 2021, Coinbase went public. Its IPO was widely regarded as a milestone event for the cryptocurrency industry, marking a key step for the industry into the mainstream financial world.

Currently, Coinbase holds 11,776 BTC, valued at $129 million, accounting for 0.056% of the 21 million circulating supply.

As Coinbase does not involve a business transformation from a traditional industry to the crypto industry, the relationship between its stock price and the crypto bull/bear market is the most clear-cut.

In November 2021, BTC set a new high of nearly $70,000, and the crypto market was booming. COIN subsequently reached a high of $357, attracting widespread attention for a time. However, in 2022, the crypto industry exposed a series of adverse events such as the LUNA collapse and the FTX bankruptcy. The crypto winter arrived, and COIN fell below $50. Its stock price remained depressed in 2023, always hovering below $100. In 2024, due to a shift in US regulatory policy, the SEC approved multiple spot Bitcoin ETFs, and Coinbase was selected as the Bitcoin custodian for the vast majority of these ETFs, significantly boosting COIN's stock price trend. In July this year, COIN climbed to a high of $419.78.

On October 8, COIN reached a monthly high of $387.27. However, after the "1011 crash," COIN also fell. As of this writing, it is reported at $328.51, down 15.17% from its monthly high, which is relatively close to BTC's 13% decline.

II. Analysis of the Relationship Between DAT Company Stock Prices and BTC Price

In the short term, regardless of the BTC price at the time, as long as a company announces a transformation, its stock price basically experiences an upward trend. However, post-transformation stock prices are greatly affected by crypto market conditions. As seen with the first three companies mentioned above, when faced with the "1011 crash," the decline in their stock prices from their highs to now has been greater than BTC's decline.

In the long term, taking Coinbase as an example: Calculating from the time after Coinbase's IPO in 2021, COIN's stock price has a strong correlation with shifts in the crypto bull/bear market. When the crypto market is in a bull cycle, COIN's price is at high levels; during crypto bear markets, COIN always hovers at low points.

Therefore, the fate of DAT companies is deeply tied to Bitcoin's bull and bear markets. When the crypto market is favorable, they can "soar" together with the market. However, when the market is unfavorable, they face the dual squeeze of "falling coin prices" and "rigid operating costs," potentially leading to huge losses and plummeting stock prices.

III. The DAT Debate: A Double-Edged Sword

Chris Perkins, President of Coinfund, once declared in an article in Forbes magazine that the summer of 2025 would be an "unforgettable summer of DAT." Indeed, in the summer of 2025, we saw too many news stories about companies from traditional industries announcing the start of crypto treasury reserves. But the debate about DATs has never stopped.

Compared to investors' investments in traditional companies, DAT companies have their unique characteristics: they are both publicly traded companies and capital market instruments that can directly invest in specific digital assets. For investors, this provides an attractive alternative without needing to hold the asset directly or through an exchange-traded fund. Investing in DATs is seen as a high-beta, high-leverage way to invest in the underlying asset, allowing investors to gain greater investment exposure through a familiar equity structure.

This model is built on a "positive feedback loop" that, when conditions are favorable, can lead to rapid wealth growth. When crypto asset prices rise, the equity value of DATs often trades at a significant premium to their Net Asset Value (NAV). This premium allows companies to raise new funds by issuing shares at prices above NAV, a process often achieved through At-The-Market (ATM) offering programs. The proceeds from these share issuances are then used to purchase more digital assets, thereby increasing the asset value per share for existing investors. This positive feedback loop can be a powerful growth engine, but it is also fragile, highly dependent on market sentiment and a sustained upward trend in asset prices.

Investors optimistic about DATs believe they still have significant room for development:

First, regulatory clarity is steadily improving. As governments around the world, including the US, develop more regulated frameworks for digital assets, institutional confidence is growing. Meanwhile, regulators are gradually moving away from caution and actively exploring how to integrate digital assets into the existing financial system, thereby creating a more predictable environment for corporate operations and investor participation.

Second, the broad shift of institutional investors towards digital assets is undeniable. A 2025 survey of institutional investors by Ernst & Young showed that the vast majority of institutional investors expect to increase their allocation to digital assets, with their primary goal being portfolio diversification.

Finally, the unique advantages of digital assets – such as faster settlement speeds, lower financing costs, and greater transparency – make them an ideal choice for corporate treasurers looking to optimize cash management and tap into value beyond traditional financial instruments.

Critics argue that DATs carry significant risks: the reflexive cycle driven by trading premiums. The model works well when the market is in a sustained uptrend, but it can quickly fail once market sentiment reverses. A plunge in premiums can trigger a negative feedback loop, making it difficult for companies to raise funds without significantly diluting equity or taking on high-cost debt.

For struggling companies, becoming a DAT is a way to rebrand, leverage the growing cryptocurrency market, and raise new funds. But many DAT companies lacking significant operating revenue heavily rely on capital market financing. Once the market slumps, the ability to repay or refinance this debt becomes a major concern. Furthermore, an excessive focus on asset appreciation might cause investors and management to overlook the hidden costs of holding these assets. Beyond the initial capital investment, there are ongoing expenses like custody, security, compliance, and risk management. Like any financial market, the digital asset market has volatility, thus requiring robust risk frameworks, sound governance, and operational excellence to guard against fraud and cyber threats.

IV. The Future of DATs

Tom Lee, Chairman of BitMine, once pointed out that as more DATs enter the public market, many DATs are trading below their net asset value, i.e., the value of their underlying cryptocurrency holdings. "If this isn't a burst bubble, then how should a bubble burst?"

David Duong, Head of Investment Research at Coinbase, and Coinbase researcher Colin Basco noted in a report: Public companies buying cryptocurrencies are entering a "player versus player" stage, where companies will compete more fiercely for investor funds, which could push up cryptocurrency market prices. "The days of easy money and guaranteed mNAV (multiple of NAV) premiums are over."

Early entrants like the large Bitcoin holding company Strategy "enjoyed considerable premiums," but "competition, execution risk, and regulatory constraints have led to mNAV compression." "The scarcity premium obtained by early adopters has disappeared," and now crypto assets "have reached a critical inflection point." In the current competitive market environment, the success of treasury companies "increasingly depends on execution, differentiation, and timing, rather than simply replicating Strategy's strategy."

After the great waves wash away the sand, the DAT companies that remain are likely to be those that can demonstrate a clear and robust business model, rather than relying solely on market sentiment and leverage.