CoinShares' James Butterfill reported on December 6, 2025, that the Digital Asset Treasury bubble has burst, impacting the valuation of listed crypto-treasury firms.
This collapse signals reduced investor tolerance for equity dilution and marks a shift toward disciplined treasury strategies, potentially aided by improved macroeconomic conditions and interest rate cuts.
Digital Asset Treasury Valuations Under Pressure
James Butterfill's report from CoinShares indicates a significant correction in digital asset treasury valuations as premiums have retreated to market norm levels. Companies are adjusting strategies following earlier periods of overvaluation, rooted in reliance on treasury asset growth models. This shift reflects structural adjustments as firms reassess equity value against the net asset value.
The potential impact involves corporate strategies in managing these valuations. Either asset prices may plummet, resulting in unsettled selling, or companies might hold positions, banking on macroeconomic improvements and interest rate cuts expected in December. Butterfill favors strategic holding, noting potential climbs in asset values due to these conditions.
"The ‘DAT bubble has burst’ thesis fits into a broader industry conversation in 2025 that many listed vehicles whose equity traded at a large premium to underlying crypto holdings have seen those premiums collapse toward or below net asset value." — James Butterfill, Research Director, CoinShares
Bitcoin's Role in Shifting Corporate Treasury Strategies
In the early 2020s, companies such as MicroStrategy saw their equities trade at high premiums due to large Bitcoin holdings, a trend that inversely influenced corporate valuation today.
As of December 5, 2025, Bitcoin's price rests at $89,112.85 with a market cap of $1.78 trillion. The asset holds a 58.37% market dominance amidst declining trading volumes and price dips, shifting -4.04% over 24 hours and -13.95% over 30 days.
An evolving landscape for digital assets is projected. The past correction cycle underscores a drive towards more sustainable and diversified asset management approaches. Companies may increasingly turn to disciplined integration of crypto in broader treasury frameworks, helping navigate financial and regulatory challenges while ensuring continued investment viability.