DAT firm inflows plummet over 95%, raising market risk

Fund inflows into companies with a Digital Asset Treasury (DAT) strategy have fallen by more than 95% over the last four months, BeInCrypto reported, citing data from DeFiLlama. Weekly inflows dropped from $5.57 billion in July to $259 million in November, indicating a significant decline in institutional buying pressure. The report notes that the decrease in DAT fund inflows has been particularly sharp in the fourth quarter, driven by increased market uncertainty from events like October's tariff-related shocks and the U.S. government shutdown. Consequently, companies implementing DAT strategies are facing worsening profitability as asset values decline and new capital dries up. According to data from Artemis, Bitcoin has fallen approximately 10% over the past three months, while the stock prices of these DAT firms have dropped between 40% and 90% during the same period, a much steeper decline than their underlying assets. The report warns that if these companies begin to liquidate their cryptocurrency holdings, it could trigger a chain reaction of selling across the broader market.