Digital asset treasury strategies have cooled sharply as monthly inflows into treasury-focused firms fell to $1.32B, signaling a pause in what had been a rapid institutional accumulation of crypto. The decline coincided with large market liquidations, heavy equity losses and renewed regulatory scrutiny that together reshape risk-calibration for product, custody and compliance teams.
November saw inflows to digital-asset-treasury (DAT) companies slump to $1.32B, the lowest monthly capital injection recorded this year, and many listed DATs retraced sharply from 2025 peaks, with declines between 50% and 95%. The drop unfolded during a wider crypto sell-off in early December 2025 that erased about $90B in value within an hour and forced roughly $1.3B in liquidations, pushing Bitcoin below the $85k–$86k range.
Market stress produced headline losses: one treasury-focused firm recorded a $1.3B write-down on its Ethereum holdings, and these rapid mark-to-market events fed contagion into equities, breaking a five-day winning streak in major U.S. indexes as investors pared risk exposure.
The contraction in flows and price shock highlighted funding and leverage risks specific to treasury models with concentrated crypto positions while operating as public companies. Short-term volatility translated to corporate balance-sheet impairment and strained liquidity, creating operational pressures for custody arrangements, margin facilities and NAV reporting.
Digital asset treasury flows and market impact
Regulatory and indexing bodies moved to clarify how to treat companies that adopt DAT strategies: MSCI is wrestling with classification when crypto exceeds half of a firm’s holdings, and the securities regulator has outlined the risks inherent in holding digital assets and is reportedly considering a thematic ETF tied to such treasury companies. These actions illustrate a regulatory focus on disclosure, custody controls and investor protections that will influence product design and compliance roadmaps.
Corporate responses have varied. Some firms staged rebounds: a handful of DAT stocks outpaced broader crypto gains after the November slide, with one treasury company rising near 20% and others up mid-single digits. Strategic activity continued, including a partnership to develop an XRP-focused treasury strategy and plans from a major payments firm to back a DAT with $1B of XRP. A merger creating a larger Bitcoin-focused treasury firm produced a dramatic stock move — an example of consolidation reshaping the competitive landscape for custody, issuance and institutional access.
Macro factors amplified the sell-off: a rise in the 10-year U.S. Treasury yield (+7 bps to 4.08%), a manufacturing slowdown and indications of fewer central-bank rate cuts collectively tightened risk appetite and drove flows away from higher-volatility allocations into precious metals and other safe havens.
The DAT cycle has shifted from feverish accumulation to selective rebuilding, with capital flows, regulatory decisions and corporate balance-sheet resilience the key variables to watch.
