Institutional capital flows in crypto treasuries reach $2.6 billion: Is this the moment to rebalance?

The Strongest Seven-Week Rebound in Digital Asset Treasuries

Institutional investment structures in crypto assets are experiencing a notable acceleration. Over a two-week period, digital asset treasuries (DAT) accumulated more than $2.6 billion in capital, marking the strongest streak in seven weeks. This movement contrasts with the widespread market volatility in crypto and indicates a deliberate strategy by sophisticated investors.

Between December 8 and December 14, these structures recorded $1.36 billion in net inflows. Bitcoin led with $940 million, followed by Ethereum with $423 million, while Bittensor captured $724,000. Solana experienced moderate outflows of $2.55 million. With Bitcoin currently trading around $93,110 (with a 2.87% increase over seven days) and Ethereum at $3,230, these numbers reflect persistent institutional appetite for top-tier assets.

Strategy: Accumulation of $2 Billion in Bitcoin

A detailed analysis reveals the aggressive strategy of Strategy, the leading Bitcoin treasury company. Between December 7 and December 15, the company made two large-scale purchase operations. In the first purchase, it acquired 10,624 BTC valued at approximately $962.69 million. One week later, Strategy increased its holdings with another acquisition of 10,645 BTC for $980.28 million. In total, the company invested nearly $2 billion in Bitcoin during this period.

With 671,270 BTC in its holdings and considering the current price of $93,110, Strategy’s holdings are valued at approximately $62.5 billion. However, the net asset value (mNAV) of the company remains at 0.91, below the parity level that investors monitor as a critical health indicator. This discount persists despite aggressive accumulation.

Catalysts: Fed Rates, Accounting Changes, and Deep Liquidity

The rate cut by the Federal Reserve on December 10 served as the first catalyst. Jimmy Xue, co-founder and COO of the Axis protocol, explains that “the liquidity injection significantly reduced the cost of leverage for institutional arbitrageurs, accelerating the pursuit of yields in alternative assets.”

An equally important regulatory factor is the FASB accounting standard (ASU 2023-08), which came into effect this year. This change allows companies to report crypto asset appreciation as net income for the first time. While some consider this a “year-end maneuver” to optimize balance sheets in 2025, Xue notes that it represents “a structural reversal towards treating digital assets as a permanent category of tradable securities.”

The flow composition reflects a clear mindset: concentration in Bitcoin and Ethereum, assets with the liquidity depth necessary for large-scale treasury movements. This “flight to quality” contrasts with the inclusion of Bittensor, whose $724,000 inflows were tied to a specific event: its December 12 halving and the launch of the Grayscale Bittensor Trust.

Discount Reduction and Competitive Viability

Inflows are having a direct impact on trust valuations. “These flows are reducing the discount, which typically ranges from 10 to 15%,” Xue notes. Cheaper capital allows investors to use DATs as leveraged proxies for Bitcoin and Ethereum at effective discounts.

By 2026, digital asset treasuries maintain competitive advantages over spot ETFs. They can capture native staking yields, a capability that most US spot ETFs cannot legally offer. Additionally, they allow the use of underlying assets for strategic mergers and acquisitions, evolving into “active yield” vehicles with superior capital efficiency.

The prediction market Myriad’s outlook suggests caution: only a 32% probability is assigned to Strategy’s mNAV reaching 1.5 versus 0.85. However, Strategy’s deployment of a $1.44 billion cash reserve for dividends indicates the company is actively working to close this valuation gap.

Perspective: Viability of Institutional Structures

Data suggests that digital asset treasuries are not a passing trend but evolving structures designed to capture value within the crypto ecosystem in ways passive structures cannot replicate. The combination of institutional liquidity, favorable regulatory changes, and operational flexibility positions DATs as viable competitors in the crypto investment landscape for the next market cycle.