Crypto Treasury Firms’ Market Value Rises to $340 Billion as Altcoin DATs Stand Out

The market capitalization of digital asset treasury companies, or DATs, has resumed growing, with altcoin-focused firms posting returns that outpace those of the tokens they hold.

The Block reported on Sept. 2 that the combined market value of crypto DATs has climbed about 10% since mid-August to around $340 billion. That remains below the roughly $490 billion reached in October and November last year, when Bitcoin traded near its record high of about $126,000.

DATs raise money through share sales and other financing, then use the proceeds to buy and hold cryptocurrencies such as Bitcoin and Ether. When a company’s valuation trades at a premium to the value of its crypto holdings, it can raise additional funds through new stock issuance and use that capital to buy more digital assets.

Shares of major DATs have also advanced. Strategy, which holds Bitcoin, has risen about 30% recently, while Ether treasury firm Bitmine has gained 27%. Strategy has outperformed Bitcoin by about 10 percentage points since Aug. 17.

The gains were even larger for DATs holding altcoins. PURR, which is built around Hyperliquid’s HYPE token, has surged 62%, while CYPH, which holds Zcash, has jumped 142%. Over the same period, HYPE and ZEC rose 36% and 56%, respectively, meaning the related DAT stocks far outperformed the underlying tokens.

The DAT business model is also expanding beyond simply holding tokens to direct participation in blockchain ecosystems. Ethereum-based DATs can stake their Ether, participate in network operations and generate additional income.

PURR operates a Hyperliquid validator and takes part in governance voting, while CYPH provides hash rate to the Zcash network through its mining business. Unlike Strategy, which mainly holds Bitcoin, these DATs can put their holdings to work directly on the networks tied to their assets.

A premium in a DAT’s market value relative to its modified net asset value, or mNAV, can also enable a cycle of additional fundraising and further crypto purchases. Companies can issue stock at elevated valuations, raise cash and redeploy the proceeds into more token purchases, increasing crypto holdings per share.