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- Zafar Naik
Zafar Naik
- Reviewed by:
Qadir AKQadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
- Dec 27, 2025 10:56 UTC
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At Least Five Crypto Treasury Firms Face Asset Sales or Closure in 2026, Galaxy Says
Galaxy Digital warns multiple crypto treasury companies could be forced into asset sales, acquisitions, or shutdowns.
Falling market premiums are exposing weaknesses in several digital asset treasury models.
A crowded crypto treasury trade may be entering a decisive shakeout phase in 2026.
The rapid rise of crypto treasury companies could be facing its real test soon.
In its annual report, Galaxy Digital warned that five or more Digital Asset Treasury companies (DATs) could soon be forced to sell assets, merge with larger players, or shut down altogether as market conditions tighten.
The report points to growing pressure on firms that rushed into crypto treasuries without solid long-term strategies.
Digital Asset Treasuries – publicly listed companies that hold assets like Bitcoin or Ethereum on their balance sheets – surged earlier this year as crypto prices climbed and financing became easier. But that momentum is fading fast.
mNAV Slips Below Key Levels
Galaxy highlighted a sharp shift in market-to-net asset value (mNAV), a key metric that compares a company’s market value to the value of its crypto holdings. Many Bitcoin, Ethereum, and Solana-focused DATs are now trading at mNAVs below 1, meaning investors value these companies at less than their underlying assets.
“After the rush of companies across disparate business lines converting into DATs to capitalize on market financing conditions, the next phase will separate durable DATs from those without coherent strategies or asset management capabilities,” Galaxy’s Jianing Wu said.
Once mNAV falls below 1, issuing new shares becomes dilutive, limiting a company’s ability to raise capital and expand its crypto holdings.
A Crowded Trade Faces Reality
The DAT boom was fueled by bullish markets and friendlier regulation in the U.S., even as investors gained easier access to crypto through ETFs. Many DATs aimed to outperform spot crypto prices using tools like equity issuance and staking strategies.
But as prices decline, those models are under strain.
“The viability of DATCOs is closely tied to the persistence of an equity premium to NAV,” Macquarie analysts warned. “If this premium erodes or reverses to a discount, the model faces significant challenges”
Only the Strongest May Survive
Galaxy suggests that firms with scale, strong capital structures, and liquidity planning – such as Strategy or Japan-based Metaplanet – may weather the downturn. Others, especially late entrants without clear planning, may not.
For now, DATs hold less than 1% of the total crypto market. Still, Galaxy’s message is clear: the easy phase of the crypto treasury trade is over, and the next chapter will be about discipline, not hype.
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FAQs
DATs are publicly listed firms holding crypto like Bitcoin or Ethereum to grow assets and earn returns through trading or staking.
DATs struggle as crypto prices drop and market-to-net asset values fall below 1, limiting their ability to raise funds or expand holdings.
The boom was fueled by rising crypto prices, easy financing, and bullish sentiment; it’s fading due to market declines and strategy gaps.
Investors may face losses if a DAT’s crypto holdings decline or the company struggles to raise funds. A falling market-to-net asset value can reduce confidence and limit liquidity.
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