Digital Asset Treasuries Attract Over $2.6 Billion Amid Crypto Market Uncertainty
Digital Asset Treasuries (DATs) have attracted over $2.6 billion in inflows across two weeks, driven notably by the Federal Reserve's December 10 rate cut and the introduction of new FASB rules (ASU 2023-08) that allow crypto gains to be booked as net income. From December 8 to 14, net inflows totaled approximately $1.36 billion, with Bitcoin trusts receiving $940 million, Ethereum trusts $423 million, Bittensor $724 thousand, while Solana experienced a slight outflow of $2.55 million.
Strategy, a Bitcoin treasury company, played a significant role by purchasing 10,624 BTC on December 7 for about $962.69 million and another 10,645 BTC on December 15 for roughly $980.28 million, totaling nearly $2 billion. Despite this substantial acquisition, Strategy’s mNAV stands at about 0.91, below 1, which complicates efforts to raise fresh capital. Market sentiment assessed by Myriad estimates a 32% chance that Strategy's mNAV could reach 1.5, compared to the current estimate around 0.85, signaling a cautious outlook.
To support dividends and reduce the need to sell Bitcoin holdings, Strategy launched a $1.44 billion cash reserve. The macro catalysts, including the Fed rate cut and the FASB rule change, have enabled crypto price gains to be reported as net income, bolstering the viability of DATs.
The inflow into DATs reflects a 'flight to quality' toward Bitcoin and Ethereum due to their liquidity depth. Bittensor's inflow is attributed to its upcoming halving event and the launch of the Grayscale Bittensor Trust. These inflows have narrowed the DAT discount to approximately 10–15% and support the view that DATs remain viable alternatives to spot ETFs by capturing staking yields and enabling mergers and acquisitions. The outlook for active-yield DATs remains supportive through 2026.
Bitcoin's price was around $87,170 at the time, down 3.4% week-over-week. Strategy’s total Bitcoin holdings of 671,270 BTC are valued at about $58.26 billion.
