The post Digital Asset Treasury Companies See Sharp Valuation Decline appeared on BitcoinEthereumNews.com. Key Points: Valuations of digital asset treasury companies fall sharply, inciting market reactions. Valuations of DAT companies reduced to about 1× mNAV. Future performance hinges on market behavior and macroeconomic conditions. CoinShares’ research director, James Butterfill, reports that digital asset treasury companies’ (DAT) valuations have significantly decreased, trading back to market net asset value levels as of December 2025. This shift impacts future performance, contingent on market behavior and macroeconomic conditions, notably potential interest rate cuts influencing cryptocurrency stability and investment strategies. Valuation Plunge: Effects on Digital Asset Treasuries James Butterfill, Head of Research, CoinShares, stated, “Has the DAT Bubble Already Burst? In many ways, yes. During the summer of 2025, many of these companies were trading at 3x, 5x or even 10x their market net asset value (mNAV). Today, most have fallen back to around 1x or below.” CoinShares Blog According to James Butterfill of CoinShares, the valuation decline seen in digital asset treasury companies marks a significant market shift. Many firms once trading between 3 to 10 times their market net asset value (mNAV) in mid-2025 are now back to around 1× mNAV or lower. This correction is attributed to the flawed approach of treating token treasuries as perpetual growth assets. Trading models supporting these valuations have encountered reality checks. Major market reactions are emerging as investors adjust to revaluations. John Williams of the Federal Open Market Committee (FOMC) contributed to speculation of future interest rate cuts, aiding digital asset sentiment slightly. Institutional fund flows into Bitcoin, Ethereum, and other large-cap cryptos reflect a cautiously optimistic view, yet the fluctuating sentiment shifts rapidly with external macroeconomic indicators. Past Patterns and Potential Future Shifts Did you know? In 2021, similar equity devaluation occurred when crypto valuations plummeted, drastically undervaluing treasuries. The current scenario echoes historical patterns, reinforcing the volatility… The post Digital Asset Treasury Companies See Sharp Valuation Decline appeared on BitcoinEthereumNews.com. Key Points: Valuations of digital asset treasury companies fall sharply, inciting market reactions. Valuations of DAT companies reduced to about 1× mNAV. Future performance hinges on market behavior and macroeconomic conditions. CoinShares’ research director, James Butterfill, reports that digital asset treasury companies’ (DAT) valuations have significantly decreased, trading back to market net asset value levels as of December 2025. This shift impacts future performance, contingent on market behavior and macroeconomic conditions, notably potential interest rate cuts influencing cryptocurrency stability and investment strategies. Valuation Plunge: Effects on Digital Asset Treasuries James Butterfill, Head of Research, CoinShares, stated, “Has the DAT Bubble Already Burst? In many ways, yes. During the summer of 2025, many of these companies were trading at 3x, 5x or even 10x their market net asset value (mNAV). Today, most have fallen back to around 1x or below.” CoinShares Blog According to James Butterfill of CoinShares, the valuation decline seen in digital asset treasury companies marks a significant market shift. Many firms once trading between 3 to 10 times their market net asset value (mNAV) in mid-2025 are now back to around 1× mNAV or lower. This correction is attributed to the flawed approach of treating token treasuries as perpetual growth assets. Trading models supporting these valuations have encountered reality checks. Major market reactions are emerging as investors adjust to revaluations. John Williams of the Federal Open Market Committee (FOMC) contributed to speculation of future interest rate cuts, aiding digital asset sentiment slightly. Institutional fund flows into Bitcoin, Ethereum, and other large-cap cryptos reflect a cautiously optimistic view, yet the fluctuating sentiment shifts rapidly with external macroeconomic indicators. Past Patterns and Potential Future Shifts Did you know? In 2021, similar equity devaluation occurred when crypto valuations plummeted, drastically undervaluing treasuries. The current scenario echoes historical patterns, reinforcing the volatility…

                                                                               Legal experts are concerned that transforming ESMA into the “European SEC” may hinder the licensing of crypto and fintech in the region.                     The European Commission’s proposal to expand the powers of the European Securities and Markets Authority (ESMA) is raising concerns about the centralization of the bloc’s licensing regime, despite signaling deeper institutional ambitions for its capital markets structure.On Thursday, the Commission published a package proposing to “direct supervisory competences” for key pieces of market infrastructure, including crypto-asset service providers (CASPs), trading venues and central counterparties to ESMA, Cointelegraph reported.Concerningly, the ESMA’s jurisdiction would extend to both the supervision and licensing of all European crypto and financial technology (fintech) firms, potentially leading to slower licensing regimes and hindering startup development, according to Faustine Fleuret, head of public affairs at decentralized lending protocol Morpho.Read more