Digital Asset Treasuries Hit $135B, But VanEck Warns of Growing DAT Model Risks

Digital asset treasuries (DATs) have grown rapidly, holding approximately $135 billion in crypto assets as of September, according to new research from VanEck. The surge highlights accelerating institutional accumulation but also reveals structural risks within the DAT model.

Strategy remains the dominant player, accounting for more than half of total holdings. Its 640,031 BTC are now worth around $79 billion, placing the firm’s Bitcoin treasury above the market capitalizations of several major U.S. corporations, including Airbnb and BNY Mellon.

The DAT model allows companies to raise capital by issuing securities priced below implied volatility, attracting traders who hedge with options to capture convergence profits. However, VanEck cautioned that many newer DATs operate in thin markets and are forced to offer deep discounts to attract buyers.

A key vulnerability lies in Bitcoin’s declining volatility. As the asset matures and volatility trends lower, DATs could struggle to sustain their business models, which rely on market swings to generate funding capacity. Some DATs have also begun trading below their net asset values, prompting them to sell options for income — a move that could further dampen volatility and restrict future capital inflows.

Despite these challenges, growth in the DAT sector has been explosive. Over 200 companies now operate under the DAT framework, up from just 70 a year ago. Collectively, corporate Bitcoin treasuries hold 1.32 million BTC, or about 6.6% of total supply, valued at $164 billion. Ethereum-focused DATs have also expanded quickly, accumulating 5.5 million ETH worth $24.8 billion in only a few months.

VanEck concluded that while DATs represent a new era of corporate crypto accumulation, their sustainability depends on maintaining liquidity and volatility — both of which may be increasingly difficult as the digital asset market matures.