Exploring the Collapse of the DAT Bubble: The Unexpected Decline of 2025's Leading Corporate Crypto Trend

Rapid Expansion and Subsequent Collapse: Over 200 public companies adopted Digital Asset Treasury (DAT) strategies in 2025, but many have since seen stock prices plummet by 80%–95%, indicating a potential bubble burst in the crypto market.

Origins and Growth of DAT: The DAT concept originated in 2020 with MicroStrategy's Bitcoin purchases, leading to a surge in companies adopting similar strategies, particularly during a pro-crypto political climate in 2025.

Market Downturn and Consequences: The downturn began in October 2025 when Bitcoin prices fell, causing DAT firms to face significant losses, leading to a cycle of selling assets at a loss and further price declines.

Future of DATs Uncertain: The DAT boom, initially seen as a way to enhance corporate balance sheets, is now questioned as a sustainable model, with many firms trading below their crypto reserves and facing potential insolvency.