Key Takeaways
- •Digital-asset treasuries (DATs) are increasingly using insider-supplied tokens instead of purchasing crypto on the market.
- •This shift transfers valuation risk from sponsors to public shareholders.
The Evolving DAT Model
A new type of public company, the digital-asset treasury (DAT), has become a magnet for investors seeking indirect exposure to token markets. On paper, the concept is familiar: a listed vehicle providing access to digital assets without the need for personal wallet management.
However, the rules of this model have quietly changed. Instead of raising capital and using it to accumulate tokens on the market, a growing number of sponsors are providing their own tokens to establish the treasury. This contribution is then valued internally at a price determined within the deal, significantly before the broader market has a chance to weigh in. Consequently, these stocks appear crypto-backed but are priced by insiders rather than through market discovery.
Risk Transfer in the New DAT Model
In this new structure, risks related to token supply, valuation, and liquidity are transferred from the sponsors to the general market via the stock ticker, rather than through direct token trading. For insiders, this arrangement serves as a liquidity outlet for assets that may not yet have widespread trading volume. For shareholders, it can mean owning exposure to a token before that token has demonstrated its market viability.
It is only after the stock begins trading that investors discover the market's true sentiment toward the contributed asset, sometimes with stark consequences.
Market Reaction to Valuations
Recent token listings have highlighted the discrepancy between contribution prices and subsequent trading prices. In several instances, the debut price was substantially lower than the valuation used to seed the DAT, causing the perceived premium in the stock to evaporate within minutes. Because DATs function as leveraged bets on the contributed token, even a minor decline in the token's value can severely impact the equity.
This pattern has been observed across multiple symbols this year. Despite variations in issuers and tokens, the market's reaction has been consistently similar: once pricing power shifts from insiders to the public, the associated risks cease to be theoretical.
Reasons for the Current Trend
The initial wave of DATs, inspired by Bitcoin treasury strategies, involved raising cash from investors and acquiring cryptocurrency on the open market. This approach necessitated investor confidence and substantial liquid capital. As risk appetite diminished in 2025, a new strategy emerged: rather than seeking external funding, sponsors began seeding their DATs with their own tokens.
While some tokens possess deep liquidity and established market histories, making in-kind contributions uncontroversial, the situation changes when the contributor also controls a significant portion of the token's supply. In such cases, especially when the stock represents the market's first exposure to the token, the structure becomes a bet not only on price but also on trust.
Broader Implications for Investors
In a bull market, DATs utilizing in-kind contributions can create an appearance of success for the contributed token. Conversely, in a bear market, these structures can invert their purpose, transferring volatility directly to retail investors instead of shielding sponsors from it.
As long as investors continue to view DAT tickers as mere "crypto proxies," this model is likely to persist. Whether the model ultimately facilitates broader access to digital assets or primarily serves to shift risk from insiders to the public will depend on how future market cycles unfold.