Bitcoin Treasury Fever Cools as DAT Cap Falls Below $150B
Ledn co-founder and CEO Adam Reeds says the Bitcoin treasury trend is cooling as digital asset treasury (DAT) market value dips under $150 billion. He notes that the outsized gains from aggressive coin hoarding—such as MicroStrategy’s 24x and Bitcoin’s 10x rise—are harder to replicate. Recent data show the combined Bitcoin holdings of DAT firms dropped from $165 billion to $134 billion despite Bitcoin’s relative price stability. Public assets tied to these models have lost value, and share prices across the sector are down. Reeds warns that many DAT firms lack unique management skills or robust capital allocation frameworks to support premium valuations. Although these companies focus on raising cryptocurrency per share, their ability to sustain above-market returns is unclear. This cooling of Bitcoin treasury fever suggests less momentum for large-scale crypto accumulation. Traders should watch DAT market cap and sector performance as indicators of institutional appetite for digital asset reserves.
Bearish
Reeds’s warning signals waning institutional appetite for large-scale Bitcoin accumulation. The sharp drop in DAT market cap and Bitcoin holdings suggests reduced momentum for coin hoarding. Similar to past cycles when treasury-focused firms retrenched after gains plateaued, traders may see lower demand pressure on BTC. In the short term, this trend can weigh on Bitcoin price stability. Over the long term, weaker treasury demand may slow price rallies driven by corporate reserves. Traders should monitor DAT capital flows and sector share prices for cues on institutional sentiment. If market cap stabilizes or recovers, bearish pressure may ease; continued declines could prolong downside risk.