Introduction
This article was flagged for fact-checking due to its coverage of Digital Asset Treasury companies (DATs) and their connection to recent volatility in the cryptocurrency market. Readers are seeking clarity about whether the current downturn in both cryptocurrencies and DAT stocks signals an industry-wide risk or represents media-driven fear. In particular, there is interest in whether DATs are worsening selling pressures and if claims about their fragility and “bubble” dynamics are fairly represented.
Historical Context
The concept of Digital Asset Treasuries—companies that hold significant amounts of cryptocurrencies such as Bitcoin and Ether on their balance sheets—is relatively new but has rapidly gained prominence. Early adopters, most notably Strategy Inc., began acquiring digital assets in 2020, marking a novel approach for public companies to provide their shareholders with crypto exposure. A dramatic increase in both crypto asset valuations and mainstream acceptance since 2021 contributed to the rise of DATs. Still, both the asset class and these companies remain vulnerable to shifts in the global economy, regulatory changes, and market sentiment.
Fact-Check: Specific Claims
Claim #1: “DATs have come into focus amid recent crypto market turmoil, with bitcoin well off its all-time high.”
This statement accurately reflects the latest market developments. As of December 2025, Bitcoin experienced a significant price decline—falling by nearly 5% in a single day and marking its most challenging month since the 2021 crash. DATs, which are heavily exposed to these assets, have also faced sharply declining share prices, with some trading below the net asset value of their crypto holdings, underscoring pressure within the sector. For further reference, see this Reuters coverage on the struggles of crypto-hoarding companies.
Claim #2: “In 2021, fewer than 10 companies held bitcoin in their treasuries…That number has since jumped to 190 companies, while another 10 to 20 firms are focused on alternative digital assets as of September.”
This claim is supported by recent research and reporting. In 2025, over 190 companies were reported to hold substantial digital asset treasuries, collectively exceeding $135 billion. This sharp increase, as tracked by industry observers such as DLA Piper and Dexponent, is accurate and reflects a big shift toward mainstream corporate crypto adoption. Source: Dexponent via LinkedIn.
Claim #3: “DATs aim to outperform the price action of the cryptocurrency that they hold.”
This statement is only partly accurate. While DATs introduce various strategies to enhance performance—such as active rebalancing, equity issuance programs, and staking—recent data shows that many have underperformed relative to their principal crypto holdings, especially during market downturns. For example, the share price of Strategy Inc., a prominent DAT, has decreased by about 45% from its highest point, while Bitcoin rose by 10% over the same period. Therefore, while outperformance is the goal, results have often fallen short of this aim for investors. See Cointelegraph for performance details.
Claim #4: “If mNAVs continue to fall and DATs don’t have the means to keep afloat, they may turn to selling digital tokens which could put pressure on crypto markets.”
This scenario is realistic and aligned with current market observations. When the market net asset value (mNAV) for DATs dips below 1, indicating that these companies trade at a discount relative to their crypto holdings, pressure mounts for some to liquidate assets to maintain operations, especially if there is debt or liquidity risk. When DATs sell significant amounts of cryptocurrencies, this can increase market volatility and contribute to further price declines—particularly when overall market liquidity is low. Further details at Reuters.
Conclusion
The article’s central claims are largely corroborated by up-to-date research, regulatory filings, and financial data. DATs have indeed come under increased scrutiny and stress as recent market headwinds impact both cryptocurrency values and the shares of companies that hold them. The article accurately details both the risks and mechanisms by which these entities can contribute to market volatility. However, readers should note that while the challenges facing DATs are real—including underperformance and heightened selling pressure during downturns—the trend has also attracted robust debate within the industry regarding long-term sustainability and potential business model evolution. The reporting presents substantiated facts while noting expert opinions, and the risks discussed are supported by current evidence.
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Link to Original Article
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