This December Could Decide the Fate of Digital Asset Treasuries: Here’s CoinShares’ Survival Warning

Core Insights - The crypto market, particularly Digital Asset Treasury (DAT) companies, is experiencing significant turmoil due to macroeconomic fears and rising volatility, leading to sharp declines in Bitcoin, Ethereum, and other digital assets [1][2][3] Market Performance - DAT stocks have seen a drastic decline, with companies that previously traded at multiples of their modified net asset value (mNAV) now trading at or below parity, raising concerns about forced selling to maintain solvency [2][3] - During the summer of 2025, many DATs traded at 3x, 5x, or even 10x their mNAV, but are now hovering around 1x or lower, indicating a severe market correction [3] Potential Outcomes - The market faces two potential paths: a disorderly unwind due to aggressive sell-offs triggered by declining prices, or a recovery if companies hold their balances, supported by an improving macro backdrop and potential rate cuts [3][5] - There is speculation that a rate cut in December could weaken the dollar and ease liquidity stress, potentially leading to a rebound in digital assets [5][6] Industry Evolution - Regardless of a potential recovery, the industry must address structural flaws to ensure long-term viability, as highlighted by industry experts [7]