Digital asset financial companies (DAT, Digital Asset Treasury ) have recently emerged not just as a hot topic in the encryption circle, but as a revolution in corporate financial strategy. As Bitcoin, Ethereum, and other encryption assets are gradually being viewed as “enterprise-level assets,” DAT companies are building balance sheets through holding coins, and currently, hundreds of DAT companies are continuously entering the TradFi market like mushrooms after rain, holding encryption assets exceeding 100 billion USD. How should one select stocks and assess suitable investment timing?
The leverage effect of DAT in the capital market
DAT Company will raise funds by issuing stocks, bonds, etc., and then invest the capital into encryption currency.
The increase in coin price → Company asset net worth (NAV) rises → Stock price increases → Easier fundraising → Buy coins again, forming a positive cycle. This “coin-based shareholder return rate” has recently attracted a large number of investors.
DAT not only holds coins but also participates in liquidity mining, staking, governance voting, and other DeFi activities to generate additional income. The company has begun to operate like a hedge fund, utilizing blockchain technology for real-time fund management. It can also protect its position by repurchasing company shares when the stock price is weak, thereby enhancing asset value.
(SharpLink repurchase new flywheel activated, mNAV still below 1, official guarantee SBET lower limit? )
These funds directly enter the encryption market, driving the rise of coin prices and corporate valuations in sync. It is considered one of the main driving forces behind this wave of cryptocurrency increase.
MicroStrategy is the pioneer of BTC, ETH is led by Wall Street, and SOL is rapidly catching up.
The first company to propose a Bitcoin reserve strategy, MicroStrategy (, has recently been renamed Strategy). As early as September 2020, it announced the Treasury Reserve Policy, which is a policy that uses Bitcoin as the company's primary reserve asset. The company raises funds through debt and equity financing transactions to continue purchasing Bitcoin.
In June of this year, Tom Lee, a well-known analyst on Wall Street and co-founder of Fundstrat, took over as the chairman of the board of Bitcoin miner BitMine Immersion Technologies, and will drive the company's transformation into an Ethereum reserve company, sparking a wave of Ethereum reserve strategy companies.
The SOL reserve strategy companies have actually been quietly increasing. Recently, Forward Industries (FORD), which is jointly funded by three major players: Galaxy Digital, Jump Crypto, and Multicoin Capital, has raised up to $1.65 billion. The stock price has surged for several days, driving up other SOL reserve companies as well.
( Forward Industries raised $1.65 billion! Galaxy, Jump, and Multicoin join forces to enter the SOL reserve battlefield )
The following is a summary of the overall situation of reserve strategy companies for BTC, ETH, and SOL. The Bitcoin reserve strategy companies have been established for years, with 190 publicly listed companies, and the amount of Bitcoin purchased accounts for 5.07% of the total circulation. However, it is also evident that Ethereum and SOL reserve strategy companies are rapidly catching up, and the potential for future growth cannot be ignored.
BTC Reserve Strategy Companies ETH Reserve Strategy Companies SOL Reserve Strategy Companies Number of Listed Companies 190 20 17 Holdings 1.01 million BTC 3.95 million ETH 8.225 million SOL Proportion of Total Circulation 5.07% 3.26% 1.47% Value of Holdings $117.3 billion $18.4 billion $2.85 billion Reference Websites bitcointreasuries.net/ www.strategicethreserve.xyz/ www.strategicsolanareserve.org/
How to evaluate the DAT stock price?
Most DAT companies are what are known as “zombie companies”; their core business does not make money, making it naturally difficult to measure with traditional financial indicators.
TradFi uses the Price-Book Ratio ( to evaluate the high and low of a company's stock price. The P/B ratio is the ratio of the stock price to the net asset value per share, with net asset value representing the company's actual value or liquidation value. If we do not consider the company's other assets and purely use the value of its held encryption currencies to represent the company's liquidation value, we can also derive a P/B ratio. This applied to DAT company is the well-known mNAV, which is the current stock price compared to the value of its held encryption currencies.
mNAV does not include the convertible bonds and preferred shares issued by the company, and is divided into basic mNAV calculated based on the existing shares outstanding, and diluted mNAV which takes into account shares that may be converted later. From a more conservative perspective, the author will use diluted mNAV as the main basis.
Each company's mNAV calculation for DAT is most detailed on mstr-tracker.com, but this website started by tracking MicroStrategy and also provides historical data tracking. Unfortunately, the number of tracked companies is still very limited.
The websites of reserve strategy companies categorized by BTC, ETH, and SOL, as organized in the table above, also provide real-time mNAV data. However, the ETH and SOL reserve strategy companies are still in the early stages, and many data points are not considered real-time. Additionally, most companies have not promptly announced the status of new share issuances, which can easily lead to delayed and distorted data. This point needs special attention.
How to select DAT targets and entry timing?
Most DAT companies experience a honeymoon period after announcing their entry into encryption reserves. The length of this honeymoon period varies depending on the company's appeal, such as the background of investors and whether the management team can attract community attention. However, as market competition becomes increasingly fierce, the honeymoon period is also getting shorter, sometimes lasting only 1 to 2 days. If investors want to get in early, they must be quick and sharp; otherwise, they risk getting trapped at high points and becoming fodder.
A more prudent approach may be to wait for the correction of stock prices after the honeymoon period, then reassess whether the mNAV falls back into a reasonable range before entering the market. It is also recommended to directly select the leaders among various coins and stocks, and to evaluate whether their management team and investors have the continued appeal and execution ability to operate sustainably. Only then will there be an opportunity for stock prices to continue to grow along with the accumulation and rise of encryption.
However, the author would like to remind that with the competition in the market and its gradual maturation, the high valuation glory of early MicroStrategy )MSTR( and Metaplanet may not be replicated. Many small DATs have recently seen their mNAV drop below 1, so it is crucial to carefully select targets and avoid chasing highs when investing.
How to invest in overseas DAT?
There are two ways to invest in overseas listed companies: by opening an overseas brokerage account or through sub-delegated trading. Taiwanese brokerages often provide sub-delegated trading for US stocks, Japanese stocks, Hong Kong stocks, and the Shanghai-Hong Kong Stock Connect, allowing investors to open one account to simultaneously invest in multiple national markets, which is a convenient investment channel for investors who do not need to trade frequently.
) How to invest in overseas Bitcoin reserve strategy companies? Is it better to open an overseas securities account or a sub-delegated account? (
This article explains how DAT can boost stock prices through encryption assets, investment timing, and stock selection strategies. It first appeared in Chain News ABMedia.
