Digital Asset Treasuries Hit $135 Billion — But VanEck Warns the DAT Model May Be Unsustainable

The rapid rise of Digital Asset Treasuries (DATs) is reshaping corporate finance — but according to a new report from VanEck, the growth may be coming at a cost. Total assets under DAT structures have now reached a record $135 billion, the highest level to date, while concerns mount about the long-term sustainability of their operating model.

Strategy Leads the Pack — Holding Over Half of All DAT Assets VanEck’s analysis highlights that Strategy, led by Michael Saylor, accounts for more than half of the total DAT value. After Bitcoin’s latest price surge, the company’s holdings have reached an estimated $79 billion, exceeding the market capitalization of major global corporations like Airbnb, Motorola, and Deutsche Bank. Strategy currently owns 640,031 BTC, acquired for around $47.35 billion, now valued at $79.4 billion at current market prices — making it the largest corporate Bitcoin holder in the world.

How the DAT Model Works — and Why It’s Risky The DAT system leverages market volatility to raise capital by selling securities below their implied volatility value. These discounted offerings attract sophisticated traders, who hedge using “expensive” options to profit as volatility converges. However, VanEck notes that many newer DATs lack deep, liquid options markets, forcing them to offer heavy discounts. One example is Bitmine Immersion Technologies, which recently sold a discounted package despite having double the trading volume of most other DAT issuers. The DAT model faces two major vulnerabilities:

🔹 Declining Bitcoin volatility, which has been falling for nearly a decade — a critical component for DAT profitability.

🔹 Net asset value erosion, as several DATs are now trading below their NAV. In response, some companies have shifted to selling options to generate income instead of issuing shares, a move that may further suppress volatility and create a self-reinforcing cycle. “This dynamic could deplete the very volatility well that fuels the system, eventually limiting the ability of DATs to fund future purchases,” VanEck warns.

Explosive Growth: 200+ Companies Join the DAT Revolution According to the Digital Assets Council, the number of firms adopting the DAT structure has nearly tripled — from about 70 in September 2024 to over 200 by September 2025. More than 190 companies now use Bitcoin as their primary reserve asset, while 10–20 others rely on Ethereum or altcoins. “This accelerating pace of growth highlights the mainstreaming of DATs, but it also underscores the sector’s leverage and systemic risks,” the report cautions.

Bitcoin and Ethereum Dominate Corporate Reserves Combined public and private company treasuries now hold 1.32 million BTC, representing roughly 6.6% of Bitcoin’s total circulating supply — worth around $164 billion. Meanwhile, Ethereum-based treasuries have accumulated 5.5 million ETH, or about 4.5% of total supply, valued at $24.8 billion.

Bottom Line While Digital Asset Treasuries are revolutionizing how corporations manage capital, VanEck warns that overreliance on crypto volatility poses a serious long-term risk. For now, the DAT model remains profitable — but as market volatility continues to shrink and liquidity tightens, the sustainability of this explosive growth could come under pressure.

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