Digital Asset Treasury Model Weakens as Trading Premiums Decline

The model used by Digital Asset Treasuries (DATs) to finance growth through trading premiums over their crypto holdings is weakening, according to a report from DWF Ventures.

Only four of the 20 largest DATs trade above their market value compared to the value of their underlying crypto holdings, known as mNAV. This means most DATs now trade at discounts to their crypto holdings.

The shift is linked to investors no longer pricing DAT shares at a persistent premium for crypto exposure, which was a key funding mechanism for these companies.

DWF's report found that the 'treasury premium' appears to have peaked in late 2024 during a Bitcoin rally when demand for leveraged BTC exposure was strong. Since then, the premium has weakened as investors became less willing to pay extra for crypto exposure through listed balance sheets.