Monthly inflows into digital asset treasury (DAT) companies have slowed to approximately $555 million, marking the lowest level since October 2024, according to data from DeFiLlama. This period precedes the significant market pump observed around the November 2024 U.S. election.
Historical data shows inflows dipped to about $32.4 million just ahead of the election, then surged to over $12.3 billion following the election results and a pro-crypto regulatory shift. However, inflows contracted throughout 2025, remaining below $10 billion monthly until August 2025, before sharply declining again.
The challenging environment has been exacerbated by the crypto market crash in October 2025, which initiated a multi-month bear market and rolled back crypto prices to pre-election levels. Analysts point to a liquidation shock on October 10–11 as a key accelerant. This event damaged market-maker balance sheets, thinned order books, and triggered a capital pullback, creating a feedback loop that froze buying and amplified outflows.
Trading has become crowded, with a majority of DATs now trading below their net asset value (NAV), and activity concentrating in only a few names. This imbalance reduces the market's capacity to absorb new inflows at scale. When shares trade below NAV, issuing new shares can destroy value through dilution, deterring fresh capital.
Industry executives highlight the need for DATs to evolve. Patrick Ngan, CIO of Zeta Network Group, stated, "Corporate Bitcoin treasuries now need to show they can actually use the asset, not just warehouse it." He argued that crypto treasury companies with operating businesses that generate cash flow will outperform those that simply accumulate and hold crypto.
Revenue-generating strategies for these companies include staking, providing validation services for proof-of-stake networks, mining proof-of-work cryptocurrencies, and lending in DeFi. An example of innovation is real estate investor Grant Cardone's hybrid fund, which combines real estate assets with Bitcoin, leveraging property appreciation, tax advantages, and rental income to funnel into additional BTC purchases.
Looking ahead, the sector faces consolidation and sharper differentiation. Matt Hougan, CIO of Bitwise, noted, "The sector is heading to a sharper differentiation where a handful of DATs will earn durable premiums while others may drift into persistent discounts." A durable recovery in inflows is seen as contingent on tighter spreads, deeper order books, and a shift from persistent NAV discounts toward fair-value pricing.
