CoinShares: December Could Be the Month That Decides the Fate of Digital Asset Treasuries — Why?

Jakarta, Pintu News – The cryptocurrency market is in turmoil again after the sharp decline that hit Bitcoin (BTC), Ethereum (ETH), and other digital assets. This puts Digital Asset Treasuries (DATs) – companies that hold crypto on their balance sheets – back in the spotlight.

Valuations that were once well above modified net asset value (mNAV) are now falling to near or below breakeven. This situation raises concerns about whether these companies will be forced to sell crypto in order to maintain operational viability.

The Market Pressure that Snares Crypto Treasuries

The crypto price decline was exacerbated by macro risks such as the potential reversal of yen carry trades if the Bank of Japan raises interest rates. Volatility increased, chain liquidations occurred, and short positions from large institutions exacerbated the price weakness.

DAT companies that once traded at multiples of 3-10 times mNAV are now depressed around their net asset value. This has raised concerns that treasuries could be pushed into a massive sell-off.

James Butterfill of CoinShares calls these conditions fragile but not without a chance of recovery. He sees two possible scenarios: forced selling that triggers deeper pressure, or asset holding until prices recover. CoinShares tends to think the second scenario is more likely as the macro backdrop is starting to improve. The chance of a December rate cut could improve liquidity and make room for a crypto price rebound.

Read also: BTC and ETH are green, why are crypto markets up today (8/12/25)?

Is December the trigger for recovery?

The main question for the market is whether DAT is heading into a forced-selling spiral or if it is on the verge of a major short squeeze. Butterfill thinks the chance of a short squeeze remains strong if global monetary policy begins to loosen.

Cooling inflation and stabilizing bond markets reinforce speculation that the Federal Reserve may cut interest rates in December. A rate cut could weaken the dollar and trigger capital inflows into cryptocurrency assets.

However, the recovery will only benefit companies with strong balance sheet positions. DATs that rely on token accumulation without a supporting business model will remain vulnerable to market pressure. If the market turns up, massive short positions could be forced to unwind and accelerate price increases. But the momentum of the recovery remains dependent on the discipline of treasury management and the stability of macro conditions.

Read also: Ethereum (ETH) at Critical Decision Threshold, Will it Go Up or Down?

DAT Must Change or Disappear

Butterfill asserts that the market meltdown exposed structural weaknesses in many crypto treasury firms. Many DATs lack a strong core business, are overly dependent on crypto price movements, and are accumulating tokens with no real utility. Investors are becoming increasingly intolerant of risks such as share dilution, extreme asset concentration, and lack of operating income. These practices undermine the credibility of the digital treasury sector.

He predicts a natural filtering phase will occur in the DAT industry. Companies that rely solely on price momentum are likely to be eliminated, while companies with strong fundamentals will survive.

The future DAT model should reflect a global company with diversified revenues and strategic use of digital assets. If markets stabilize or recover, companies that hold on to assets instead of selling them could experience significant recovery, especially if short positions are forced to close.

Conclusion

December 2025 is a crucial point that could determine whether Digital Asset Treasuries will survive or collapse amidst crypto market pressures. A combination of potential rate cuts, macro stabilization, and disciplined treasury management could open up opportunities for recovery.

However, companies that do not have a strong business foundation remain at high risk of being eliminated. Strategic decisions in the next few weeks could shape the direction of the crypto treasury industry for years to come.

FAQ

What has made Digital Asset Treasury (DAT) depressed lately?

Falling crypto prices, macro volatility, and institutional short attacks made DAT valuations fall close to or below net asset value.

Why is December considered a defining month for DAT?

Speculation of interest rate cuts could fuel a crypto recovery, while macro uncertainty could exacerbate the pressure if conditions worsen.

What is the biggest risk for DAT if prices continue to fall?

The risk is forced-selling of crypto assets to maintain solvency, which could deepen the market correction.

What are the key opportunities for DAT if conditions improve?

The price recovery and possible short squeeze could strengthen DAT’s balance sheet which is able to survive without selling assets.

Why are many DATs criticized by investors?

Many DATs are considered weak because they lack a solid business model, rely too much on crypto price movements, and accumulate assets with no real utility.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• BeInCrypto. This December Could Decide the Fate of Digital Asset Treasuries: Here’s CoinShares’ Survival Warning. Accessed December 8, 2025
• Featured Image: Generated by AI