Strategy and BitMine Expand Holdings Despite Failing DAT Business Model

This article was first published on The Bit Journal.

The recent rush of well-established crypto-treasury companies might seem to be a sign of strength but, beneath the surface, the financials that drove their fast growth appear to be falling apart. 

The “infinite money glitch”, a term to describe how firms could raise equity at luxurious valuations, and use the resulting funds to amass cryptocurrency assets, is over.

As the likes of Strategy and BitMine Immersion Technologies (BitMine) press on with buying Bitcoin, and even Ethereum, despite narrowing premiums, the corporate-crypto space is suffering structural tension. 

The expansion now shows the fragility of Digital Asset Treasury (DAT) model.

The Vanishing “Infinite Money Glitch”

Up until recently, many of these crypto-treasuries were taking advantage of a powerful arbitrage. The stock traded at multiples, about 2.5x or more, to the NAV (Net Asset Value) of the firm’s basic assets. 

By issuing new shares at these inflated valuations and immediately buying Bitcoin or Ethereum, they effectively “printed money.”  That loop of  equity issuance – crypto purchase – NAV accretion per share,  fueled explosive growth.

As of December 2025, the m-Paying-over-NAV (mP-o-N) for Strategy is closer to 1.15×; BitMine’s stands at 1.17×. 

With premiums collapsing, the issuance of new equity no longer provides outsize value. Rather than dilution, new share sales risk the dilution of the special sauce that once justified such mega-acquisitions.

The vanishing of this infinite money glitch speaks to more fundamental changes in sentiment and structure. Market players see these firms more and more as a muted crypto-growth vehicle, wrapped with cash (or equivalent) balances, not the other way around. 

As one recent article explained, ‘DAT trade has been a horrid one’ with many stocks well-off their highs by 50-80%.

What’s Strategy and BitMine Up to Now?

Strategy, the biggest publicly traded Bitcoin treasury company, recently announced that it had acquired 10,624 BTC for $962.7 million, its largest weekly expenditure since July. The buy also increases the amount of BTC they hold to over 660,000 (3.3% of total supply).

Strategy financed a large portion of this purchase by issuing shares of common stock, and it had relied on the same means to accumulate prior holdings. 

The firm also reportedly raked in some $1.44 billion to help shore up liquidity, a move that could help soothe the investor nerves over servicing billions of dollars in debt in today’s low-premium environment.

Meanwhile, BitMine is the world’s largest corporate Ethereum treasury and they have significantly increased their ETH holdings over this last month. 

On-chain analysis from Blockchain Analytics indicates over 138,000 ETH have already been added this week alone. 

BitMine’s aggregate ETH balance is now believed to be in excess of 2.1 million tokens, and some reports suggest it could be as much as 3.7 million ETH, which would represent more than 3% of Ethereum’s circulating supply.

Rather than banking on crypto price appreciation alone, BitMine seems to be moving toward yield: the act of staking ETH to gain network-native income.

Why So Much Purchasing Despite Weak Fundamentals?

At a glance, the persisting buildup appears paradoxical, yet there is strategy behind this approach. For Strategy, the aggressive buy may be a show of faith, designed to convince markets that the company is still committed to its long-term Bitcoin view.

That may be different for BitMine. The firm appears to be laying the foundation to go from its price-driven thesis to yield-based by way of staking while garnering steady cash flow in all market conditions as opposed to just during crypto-booms.

Alternatively, Strategy is betting big on the store-of-value approach; BitMine bets on Ethereum’s changing role in smart contracts, stablecoins and institutional adoption. Either way, both seem driven by a long-term hang,  however market conditions aren’t in their favor right now.

The Bigger Picture: DAT Failure and ETF Competition

This moment is not only about two companies. It is indicative of a larger implosion of the DAT business model. Interest in corporate wrappers for crypto exposure is diminishing, particularly as regulated investment products like spot and staking ETFs become more popular.

A  2025 industry report states there has been an 81% drop in new corporate crypto-treasury purchasing over the past couple of months. 

Firms that were itching to come in from the “tourist class” of crypto treasuries are leaving, leaving only the deeply funded incumbents.

Corporate treasuries will have to differentiate not by access but leverage, yield or alternative return drivers beyond holding the crypto.

What This Means Going Forward

The sands are shifting to reveal that the era of effortless corporate crypto accumulation has passed. 

What happens to Big giants like Strategy and BitMine now is a question that will entirely hinge on one of the following three variables, which are renewed demand for crypto in 2026, stabilization of mNAV premiums above parity, and realization with regard to tokenized-asset flows or staking-yield opportunities.

If those conditions don’t pan out, the game for DATs could suffer a slow decline or drastic reinvention. 

But for now, both companies keep buying. It is perhaps about the optics of the balance sheet rather than a lurch for short-term profits.

Conclusion

The failure of the “infinite money glitch” rooted in elevated NAV premiums is not just a technicality. 

DAT premiums are falling, and then there’s the proliferation of cheaper and more efficient direct crypto exposure products such as ETFs; that business model that propelled corporate crypto treasuries in early 2025 is evaporating. 

What is left is a high-wire act, continuing accumulation to maintain confidence while trying to move toward yield, liquidity, or future tokenized-asset flows

The coming year will tell if DAT firms can adjust or fade away.

Glossary

Digital Asset Treasury (DAT) : A public company that includes cryptocurrencies like BTC or ETH as a significant portion of its corporate treasury.

Net Asset Value (NAV): The value of a company’s holdings, divided by the number of shares outstanding; used to assess how much those shares trade relative to their underlying assets.

mNAV (modified NAV premium): The price at which a DAT’s stock trades to net value of its crypto holdings. A high mNAV premium lets firms raise capital cheaply; a collapse undermines that ability.

Equity Issuance (ATM): A way for a company to raise capital by selling new shares of stock directly into the open market.

Staking: Locking certain cryptocurrencies (e.g. Ethereum) to help operate a network and make yields/rewards.

Frequently Asked Questions About Crypto Treasury Firms

Why did the DAT model fail?

The collapse originated from the narrowing of the premium of corporate shares to mNAV. And, as that premium shrank, issuing new equity became value destructive, blowing up the financial arbitrage the corporate-crypto strategy relied on.

If it’s broken, why are  Strategy and BitMine still acquiring crypto?

It appears that the Strategy is buying in order to communicate long-term confidence and support investor sentiment. But BitMine, instead, is turning to a yield-based model, to accumulate Ethereum so they can earn returns from staking the coin, not just price appreciation.

Does this mean corporate crypto treasuries are doomed?

Not necessarily, but the model has to change. With ETFs and regulated alts on the rise, debt-based DATS will have to look at something else than plain arbitrage, liquidity, yield or multi-token-asset strategies.

What options now do investors have for exposure to crypto?

Investors can look to regulated products such as spot and staking ETFs for direct exposure to crypto, typically in a cost-effective manner, and without the structural risks posed by vehicles wrapped around corporate treasury.

References

CryptoSlate
RockItCoin
Investing
Crypto Economy
AInvest
Crypto News Flash
Barron’s