Digital asset treasury companies are experiencing an unprecedented financing surge this year. After absorbing over $20 billion in massive funding, the industry is rapidly transitioning from a "blue ocean" to a highly competitive "red ocean." With most treasury company stocks trading below net asset value and liquidity pressures emerging, industry consolidation may be underway.

As the most sought-after sector in this year's cryptocurrency market, digital asset treasury (DAT) companies have witnessed an unprecedented financing boom. According to the latest data from The Block, DAT companies have raised over $20 billion in 2025 to date, setting a historical record, with nearly $10 billion raised in July alone.

However, recent market dynamics and signals suggest that the DAT financing frenzy may have peaked, with premiums compressing. According to The Block's data, many DATs are now trading at or below their net asset value levels. Additionally, liquidity has become a pressure point for DAT companies.

As previously highlighted, Coinbase Global, Inc. explicitly stated in its latest research report that the era of easy money and guaranteed net asset value (NAV) premiums has ended. The significant premiums previously enjoyed by pioneers like MicroStrategy are disappearing, with intensified competition, increased execution risks, and tightening regulatory restrictions leading to NAV multiple compression.

Facing these challenges, leading DAT companies are actively seeking differentiation strategies for survival, including enhancing liquidity, while capital is also shifting toward new sectors. Analysts point out that as the DAT sector approaches saturation, capital is searching for the next opportunity, with decentralized finance (DeFi), real-world assets (RWA), and stablecoins regaining attention.

**Financing Frenzy Peaks, Premium Era Ends**

The digital asset treasury model experienced explosive growth in 2025. According to data, DAT companies have raised over $20 billion in total financing this year. July alone saw nearly $10 billion in funding, accounting for half of the total amount.

Previous reports indicate that 154 U.S. listed companies have raised approximately $9.84 billion this year to purchase cryptocurrencies. However, the influx of capital has rapidly spawned intense competition. Coinbase Global, Inc. research director David Duong previously pointed out:

The market has entered a "player-versus-player" competitive phase, where simply copying MicroStrategy's playbook is no longer sufficient to guarantee success. The valuation premiums enjoyed by early entrants have been significantly compressed under multiple factors including intensified competition, increased execution risks, and tightening regulatory restrictions.

Pantera Capital general partner Cosmo Jiang stated, "The market will soon exit the initial formation phase of DATs and enter the execution, expansion, and potentially consolidation phase."

For massive funding rounds of $500 million to $1 billion or more, only a few companies with large market capitalizations and volatility characteristics can realistically raise such capital.

Framework Ventures co-founder Michael Anderson noted, "For example, Ethereum treasury company Bitmine might be able to achieve this, but for most companies, the pace of massive financing may be difficult to sustain."

**NAV Discounts Become Widespread, Liquidity困境**

As competition intensifies, two core issues are becoming severe tests for DAT companies: net asset value (NAV) discounts and liquidity.

According to The Block's data dashboard, many DATs are currently trading below their net asset values. L1D AG co-founder Ray Hindi described the emergence of discounts as "inevitable" and predicted market consolidation by 2026.

Digital Asset Capital Management executive chairman Richard Galvin agreed, believing that well-managed but cheaply-priced DATs could become acquisition targets.

Neoclassic Capital co-founder Michael Bucella pointed out that if companies can issue shares at 1.25x NAV valuation while making acquisitions at 0.7x NAV prices, they could immediately generate value-added effects. However, he warned that this strategy's prerequisite is high liquidity of the underlying tokens, otherwise attempts to bridge discounts could trigger a "death spiral" for assets.

Liquidity has also become a pressure point for treasury companies. Low trading volumes limit their ability to raise funds through at-the-market offerings or equity quota issuances, causing persistent discounts and making weaker companies vulnerable to acquisition. Solana ecosystem DAT company Upexi's chief strategy officer Brian Rudick noted:

Lower trading volumes limit companies' ability to raise funds through "at-the-market offerings" and similar methods, which would otherwise impact their stock prices.

He added that a DAT can only release 1% to 3% of its daily trading volume in tokens to the market without harming its stock price.

**Differentiation for Survival: Seeking New Strategies in the "Red Ocean"**

Facing challenges, leading DAT companies are actively seeking differentiation strategies for survival.

Brian Rudick revealed that most of Upexi's portfolio consists of locked Solana tokens purchased at approximately 15% discounts, primarily from over-the-counter platforms like BitGo and some investors who acquired assets during the FTX bankruptcy process. These assets unlock monthly until 2028 while still generating approximately 8% staking yields.

He explained: "Over time, the 15% discount approaches zero. If we convert this 15% discount into an equivalent yield rate, we can roughly double our staking yield."

Enhancing liquidity is another major direction. RockawayX partner Samantha Bohbot stated that building liquidity for DAT stocks requires continuous development of options markets for their underlying assets.

As options markets deepen, market makers can perform delta hedging, creating a "virtuous cycle" where options and spot liquidity mutually reinforce each other.

However, investors like Richard Galvin believe that in the long run, DAT success depends more on the long-term development trajectory of their underlying tokens rather than short-term trading volume. Additionally, regulatory bodies like NASDAQ are reportedly strengthening scrutiny of DATs, adding new variables to the sector.

**Capital Shifts to New Sectors, DeFi and Stablecoins Gain Attention**

As the DAT sector becomes increasingly crowded, venture capital focus has begun shifting.

Multiple investors indicate that with expectations of approaching Federal Reserve rate cuts, decentralized finance (DeFi) will regain momentum. GSR venture capital director Quynh Ho stated:

"Fed rate cuts will make DeFi yields look increasingly attractive, which should drive demand for high-yield RWA (real-world asset) products."

Stablecoins represent another common theme. Other investors are also focusing on consumer applications within ecosystems, late-stage financing for mature crypto businesses, and selective investments around tokens with strong fundamentals.

Overall, this depicts a more rigorous venture capital market focusing on use cases with clear product-market fit and large addressable markets.