US crypto asset management company Bitwise said most digital asset treasury (DAT) companies are likely to be acquired by larger companies as the digital asset treasury (DAT) sector begins to shrink.
In a Nov. 24 X post, Bitwise CEO Hunter Horsley suggested that DAT is still in its early stages and is on track to become an operating company that “acquires and integrates” smaller private cryptocurrency companies.
X's post was a response to a Nov. 23 thread from Bitwise Chief Investment Officer Matt Hogan, who said size will ultimately determine which DATs survive. Large companies can issue bonds, lend out cryptocurrencies, access deeper derivatives markets, and even pursue discount acquisitions, Hogan wrote.
CoinGecko's November research report revealed that there are currently 142 companies with crypto treasury, 76 of which were founded in 2025, showing how this trend has exploded this year. The so-called pure DAT companies follow the strategic model of Michael Saylor, who started accumulating BTC on his balance sheet in 2020. According to a report by CoinGecko, the majority of DATs hold Bitcoin (BTC) as a treasury asset, compared to just 15 for Ethereum (ETH) and 10 for Solana (SOL).
DAT and holdings numbers from 2020 to 2025. Source: CoinGecko
Strategy remains the largest DAT company, holding $56.6 billion worth of BTC at current prices, followed by Tom Lee's BitMine with $10.6 billion in ETH and BTC, according to DefiLlama data.
But because DATs operate indefinitely, costs and risks “grow over time,” Hogan noted. Companies that continue to add cryptocurrencies per share may trade at higher prices, while many others will remain at discounted prices or be acquired.
“DAT has been up and down at the same time over the past six months, and I think it will become even more differentiated going forward. A few stocks will execute well and trade at a premium, but many will execute poorly and trade at a discount,” Hogan wrote.
growing concern
Bitwise's warning adds to a growing list of DAT red flags from industry giants. Mike Novogratz's Galaxy Digital, for example, compared the rise of equity buyers of cryptocurrencies to the mutual fund bubble of the 1920s and warned in a July research note that the DAT boom risks becoming “structurally fragile.”
Animoca Brands, Web3's investment and development company, warned of similar risks, particularly for companies using altcoin financial plans to boost their stock prices. In a research report also released in July, Animoca pointed to the risks of volatility and “activist investors” who force companies to sell assets when stock prices fall below the dollar value of their crypto holdings, a ratio known as market-to-net asset value (mNAV).
Breed VC, an early-stage cryptocurrency venture, issued a similar warning over the summer, saying that debt-ridden financial firms could end up in a “death spiral” in a prolonged recession, with only the strongest companies being able to buy weaker ones cheaply.
