As Bitcoin spot ETFs gradually become an official channel for traditional capital, the integration of the crypto market and traditional finance is entering a new era. However, a rapidly emerging investment model in the US stock market, DAT (Digital Asset Treasury), is becoming a new favorite of investors. This model goes beyond simple "buy and hold" and instead uses listed companies as both a reservoir and an engine for crypto assets. From MicroStrategy's significant investment to numerous listed companies following suit, the DAT model, with its unique financial flexibility, is reshaping the investment logic of crypto assets.
But is the DAT craze a sign of a deep integration between traditional finance and emerging assets, or is it just another preview of a bubble amidst the capital frenzy? How will it impact the future market landscape? On September 17th, PANews hosted a special event titled "The First Year of Crypto Stocks: The Present and Future of DATs." Interviews with institutional investors and practitioners involved in DAT financing, development, and services provided an in-depth analysis of the DAT model's operating mechanisms, potential challenges, and investment strategies. Whether it's a bubble or the future, the answer may lie in every decision we make.
Q1: How does the DAT model work? How does it differ from ETFs/ETPs like Bitcoin and Ethereum?
Jeffery, Director of Investment Research at Hashkey Capital, stated: "DATs are essentially a core strategic model for listed companies to allocate some or all of their assets to cryptocurrencies like Bitcoin and Ethereum. These operations fall into two categories: one is proactive corporate transformation, where companies use their own funds and innovative financial instruments to finance token purchases (e.g., MicroStrategy); the other is using a listed company as a backdoor listing to allocate crypto assets. These operations require board resolution, execution through partners, and regular disclosure according to accounting standards, which aligns closely with US stock investment strategies."
The core differences between DAT and ETF are reflected in four aspects: in terms of strategy, DAT tends to be actively managed (it can choose to issue new shares, repurchase, hedge, and even realize currency-based appreciation through pledging and participating in RWA), while ETF is mostly passive tracking; in terms of mechanism, DAT has discount arbitrage space when the stock price falls below the net value, while ETF only provides pure asset exposure; in terms of returns, DAT returns include the company's operating cash flow and asset fluctuations, while ETF only reflects the rise and fall of the target; in terms of tools, DAT can be flexibly configured through convertible bonds, etc., while ETF is more direct and single.
Allen, President of Xinhuo Technology Research Institute: DAT can be divided into two categories. One is to retain the main business and use the purchase of coins as a means of asset optimization. The other is to abandon the main business and raise funds to buy coins as a shell company (the market pays more attention to the latter).
There are three main differences between DAT and directly buying coins or ETFs: First, the price correlation is different. ETFs/spot strongly track NAV, while DAT is affected by mNAV fluctuations and may deviate from the growth of underlying assets due to premiums or negative information; second, the holdings are different. DAT investors hold stocks of listed companies, rather than directly holding coins or ETF shares that are strongly tied to underlying assets, which is more easily accepted by traditional funds; third, the cost and management are different. DAT has no management fees, and some non-Bitcoin DATs have active management capabilities (such as staking Ether to generate an annualized return of 4%-6%), while ETFs have management fees and lack such value-added operations.
Managing Partner@Blockspaceforce, Spencer: To add some details about management fees, DATs usually sign agreements with asset managers and charge tiered fees based on the scale of management (e.g. 1% for assets below US$1 billion, 0.5% for assets above US$1.5 billion). Although these fees are similar to ETF rates, they have differentiated value due to their active management attributes.
In addition, DAT's core competitiveness is also related to two factors: one is the team and brand effect. The execution ability of the trading team and its understanding of traditional financial logic will directly affect performance (such as BMNR's operational capabilities are superior to similar targets); the second is architectural efficiency. Companies with S-3 qualifications are faster in issuing, and the model of hoarding coins after listing is less efficient, so attention should be paid to the underlying architectural logic.
Yetta, Investment Partner at Primitive Ventures: DAT is essentially a financial innovation that leverages the flexibility of US stocks. Its core value lies in achieving asset appreciation and capital access through diverse financial instruments. On the one hand, its flexibility is reflected in the diversity of fundraising tools, such as MicroStrategy's use of ATMs, convertible bonds, and preferred stock, to reach investors with high, medium, and low risk appetites. On the other hand, for assets not yet available in ETFs, DAT can help them reach traditional institutional investors subject to compliance restrictions through US stocks, thus bridging the gap between crypto assets and traditional finance.
Partner@Sora Ventures, Luke: From the perspective of entrepreneurs, there are two types of valuation logic for DAT: mature leading companies (such as MicroStrategy and MetaPlanet) mainly use valuation models such as mNAV, while most start-up DAT companies need to be evaluated according to the logic of start-ups, relying on future expectations rather than current holdings.
The key points include: traders are crucial, and investors value the long-term determination and endorsement of the team behind them (such as the long-term belief of the founder of MicroStrategy in holding coins); scale determines the echelon, and when the amount of coins held reaches a certain level, the company's liquidity and blue-chip attributes will be highlighted, and it will have the ability to issue preferred shares; BPS (coins held per share) is a key indicator. If the BPS growth rate exceeds 50%, the long-term returns of holding DAT may outperform direct coin holdings; U.S. stocks are still the core financing position. Although competition is fierce, the liquidity and richness of tools are leading the world, and high-quality Asian targets can be integrated to form economies of scale.
Q2: What signals do the recent difficulties faced by DAT companies convey? What are the directions for addressing regulatory challenges?
Yetta: The current volatility in the DAT market is an inevitable consequence of the cycle. DATs inherently possess leverage (increasing holdings through fundraising). Leverage can have negative effects in a bear market, testing a team's asset management capabilities and fortitude. A key characteristic of high-quality DATs is their deep alignment with the project owner and foundation, such as Sharp Link's alignment with Consensus and Litecoin DAT's alignment with its founders. These assets are better able to withstand bear market fluctuations.
At the regulatory level, Hong Kong only allows listed companies to use their own funds to allocate virtual assets. US exchanges have begun to adjust token subscription methods (such as In-Token subscription), showing an overall trend of advancing the game between regulation and innovation.
Spencer: The industry's signs of fundraising difficulties and tightening regulations are essentially a necessary "stress test" for new sectors. In practice, investment banks and law firms have recently become more sensitive to the "income contribution" model, with cash subscriptions becoming the mainstream, which in turn is driving market regulation. For non-Bitcoin-focused DATs, which have yet to experience a full cycle of bull and bear markets, the team's ability to navigate cyclical situations is crucial. Some companies have already signaled market confidence by announcing stock offerings.
At the regulatory response level, professional capital operation teams and banking partners are crucial and can help companies adapt to compliance requirements in different regions.
Allen: Tightened regulation is good for the industry. Nasdaq's review terms (requiring shareholder voting, restricting tail assets, and prohibiting direct OTC purchases of coins) can curb the "chasing highs and selling lows" caused by overheating, eliminate inferior targets that rely solely on narrative hype, and reduce the industry's long-term burden.
The Hong Kong government's stance isn't negative, but rather a prudent one: neither support nor oppose. The temporary adoption of the cost-based accounting method also reflects the gradual nature of regulation. In the long term, regulation can guide capital flows toward top-tier cryptocurrencies (such as BTC, ETH, and SOL), prevent the excessive flow of meaningless DATs in lower-tier cryptocurrencies, and reduce the risk of market overdrafts.
Jeffrey: Cooling regulations will help deflate bubbles and prevent systemic risks from overheating in the industry. If stricter regulation is implemented in the future, we can explore diversified global markets. For example, the European market has an investment structure similar to that of the US, but lacks a DAT presence. Regions like Japan, South Korea, and Southeast Asia also offer policy dividends.
The core reason why MicroStrategy was not included in the S&P 500 is that it is regarded as an "investment company" rather than an "operating company." This suggests that DAT needs to strengthen its interaction with underlying assets (such as participating in project governance and on-chain activities) to form the dual attributes of "coin purchase + operation."
Luke: Recent regulatory actions are primarily aimed at overheated markets. The US has introduced new regulations, such as shareholder voting, which are essentially aimed at protecting investors and preventing a bubble from bursting. Looking at global regulatory trends, many countries are gradually opening up, following the US's lead. For example, South Korea allowed token purchases through margin trading after its change of government. Taiwan has no DAT listed companies, but there is a policy window. Asian markets offer differentiated opportunities. Despite fierce competition, the US remains a core area of financing and liquidity. With its vast capital pool, diverse tools, and supportive government, it can serve as a hub for integrating high-quality global targets. For entrepreneurs, it is important to cultivate leading targets in different jurisdictions to mitigate cyclical and regulatory risks through economies of scale.
Q3: What are the motivations and benefits for DAT companies to choose altcoins? What are the strategies of various institutions?
Yetta: The launch of DAT by altcoins has dual value for project owners. First, it reduces the circulation of tokens (DAT holdings are locked in the company's treasury), which is beneficial; second, it helps them reach U.S. institutional investors who are subject to compliance restrictions and achieve indirect asset exposure through U.S. stocks.
When investing, institutions should prioritize the alignment of interests between DATs and project foundations to avoid diluting the project's brand through underqualified DATs. Primitive Ventures views DATs as a new asset class, focusing on targets with deep ties to foundations while also acknowledging the short-term liquidity opportunities presented by cash subscription models.
Spencer stated: The inclusion of non-leading cryptocurrencies in DATs reflects the industry's "let a hundred flowers bloom" policy and contributes to enriching the crypto ecosystem. From a fund perspective, while Singaporean compliant funds cannot directly purchase cryptocurrencies, they can indirectly allocate underlying assets through investing in DAT stocks, thus expanding investment channels.
Institutional strategies focus on three core points: first, the quality of underlying assets; second, financial data (such as indicators such as mNAV); and third, team intentions and operating style. These three together determine the long-term value of the target.
Allen: DATs for altcoins need to be differentiated between the top (top 30 by CMC market capitalization) and the bottom coins. DATs for the bottom coins are mostly marketing or capital operation methods of the interested parties behind them, and there is a risk of manipulation; the top coins have greater long-term value due to their market capitalization, fundamentals, and liquidity advantages.
Xinhuo Technology's strategy is to "lay out cautiously, focus on the top, and connect with traditional funds." It currently only participates in the DAT of top currencies such as ETH and SOL, and selects reliable partners (such as HashKey, Distributed Capital, etc.) to promote the entry of traditional funds by opening up part of the shares to traditional customers.
Jeffrey: The initial DAT fund will focus on top cryptocurrencies like BTC and ETH, primarily due to their high liquidity and significant ecosystem synergies (e.g., HashKey's deep connection with ETH). While we don't rule out allocating to smaller DATs in the future, we'll need to prioritize team capabilities, data performance, and asset value. We also don't rule out direct purchases. Our overall strategy remains flexible, but centered around top-tier assets.
Luke: From a secondary market perspective, the value of a DAT fundamentally depends on the quality of its underlying assets. Leading cryptocurrencies like BTC have a consensus-based foundation and tend to fluctuate upward over the long term. Minor cryptocurrencies, on the other hand, are often controlled by a small number of foundations or founders. They are prone to significant fluctuations or even zero returns during market corrections, triggering a "double death spiral" for DATs (plummeting assets combined with leverage-amplified risk).
Sora Ventures' current strategy is to first complete the layout of 9 listed companies in Asia, focusing on leading currencies such as BTC, and then evaluate opportunities in small currencies after market changes. The core logic is to prioritize the certainty of underlying assets.
