Key Takeaways
- The disappearance of QMMM has intensified concerns over transparency and accountability in DATs.
- Binance’s CZ is calling for third-party custodians and mandatory audits as a safeguard for investors.
- Despite record Bitcoin adoption among corporations, DAT valuations are falling as investor confidence erodes.
The digital asset treasury (DAT) sector is showing signs of unraveling following the sudden disappearance of QMMM, as market leaders warn of growing risks in a corner of crypto that once promised institutional legitimacy.
Binance founder Changpeng Zhao (CZ) has urged firms to use third-party crypto custodians and audits, warning against exploiting short-term gains from investors without delivering on promises.
This comes alongside a damning assessment of the DAT landscape by BitMine co-founder Tom Lee, who claimed the bubble may have burst.
With many once-hyped DATs now trading below the value of their underlying crypto assets, the question remains: is the boom well and truly over?
CZ Calls for Audits
The spectacular rise and abrupt disappearance of QMMM Holdings has become a symbol of growing unease around value-haemorrhaging DATs.
Once an obscure digital marketing company, QMMM shot to prominence in September after announcing plans for a $100 million DAT to hold Bitcoin, Ethereum, and Solana.
The declaration ignited a frenzy among retail traders, sending the stock up more than 1,700% in a single day.
However, the excitement quickly soured. Within weeks, QMMM’s Hong Kong office stood empty, and the U.S. Securities and Exchange Commission (SEC) froze trading in its shares.
Now, the company has completely vanished from public view, and its claimed crypto holdings remain unverified.
Binance founder Changpeng Zhao (CZ) said this week that all digital asset treasuries should use independent custodians with accounts audited by investors.
The QMMM controversy has crystallized many of the risks long associated with DATs.
CZ said the use of audits and third parties would now become a “prerequisite” for any future Yzi Labs investments in BNB-linked DATs.
DAT Troubles Deepen
The collapse comes as DAT valuations have fallen across the board, with several listed treasuries now trading well below the value of their underlying assets.
On Fortune’s Crypto Playbook podcast, analyst Tom Lee said the wave of DAT launches that swept through the market over the past two years has largely “run out of momentum.”
These firms, many of which were built to mirror Michael Saylor’s strategy, were designed to offer investors simplified exposure to digital assets.
Now, that appeal appears to be fading fast.
At Empery Digital, for instance, shares trade at $6.86 while its net asset value (NAV) per share stands at $8.64 — reflecting a 20% discount to its underlying Bitcoin reserves.
The firm’s dashboard lists $430 million in Bitcoin holdings against a market value of $352 million, suggesting investors are pricing in risks rather than asset strength.
Bust or Boom?
Despite growing skepticism toward DATs, parts of the market are still showing momentum.
More than 200 U.S.-listed companies have unveiled digital asset treasury plans in 2025.
According to Bitwise’s Corporate Bitcoin Adoption, Q3 2025 report, the number of public companies holding Bitcoin surged nearly 40% quarter-on-quarter to 172 firms, marking a new record.
Collectively, these companies now hold about 1.02 million BTC, roughly 4.8% of the total supply, valued at $117 billion as of September 30, 2025.
One of the most prominent examples, away from Bitcoin, is BitMine, which continues to expand its digital holdings in Ethereum.
Speaking with Ark Invest’s Cathie Wood on her podcast, BitMine co-founder Tom Lee said the company is now the 470th-largest U.S. firm by market capitalization and could soon climb further once its Ethereum staking program launches.
The plan would allow BitMine to lock portions of its 2.83 million ETH, about 2.5% of the entire Ethereum supply at the time of reporting, to earn yield.
Lee said the company expects to generate roughly a 2.8% pre-tax return, potentially placing it among the 800 most profitable U.S. companies.
Top Trending Crypto Articles
Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
