jakiro
Author: Yue Xiaoyu; Source: X, @yuexiaoyu111)
The DAT model is undergoing a huge market test!
1️⃣ What is the market most afraid of now?
It is DAT (Digital Asset Treasury) company selling coins.
Previously, listed companies borrowed money to buy coins, the market was doing well, and prices spiraled;
Now that the market has deteriorated, once these companies start selling coins, confidence will collapse, causing a market stampede.
2️⃣ How to evaluate the current operating status of DAT company?
The main indicators currently used in the market are: mNAV (Market Net Asset Value, market net asset value multiple)
In other words, how many coins a company has hoarded is its asset. It mainly depends on the ratio of the company’s market value and its digital asset holdings.
If the ratio between the two is greater than 1, this is a premium given by the market, indicating that investors recognize the company’s value and future growth potential;
If the ratio between the two is less than 1, it means that the assets are greater than the market value and the assets cannot carry the market value, which will trigger the market’s revaluation of the DAT model.
The current mNAV of DAT leader Strategy is 1.03, which is close to a negative premium.
At this time, a death spiral is very likely to occur: asset depreciation → further decline in stock price → financing difficulties
It can be said that the current market conditions are a huge test for the DAT model.
3️⃣ The DAT model is not just as simple as traditional companies borrowing money to buy coins. More importantly, the interests of traditional companies are bound to the ecology of this token.
For example, if a company is Ethereum DAT, and in order to increase the value of its own stock, it needs to find ways to boost the currency price. Then it will naturally have a strong incentive to participate in the ecology of this token.
For example, participating in staking on the PoS chain can improve network security, or lending tokens to DeFi protocols to provide liquidity, or even investing in start-up projects within the ecosystem to support the implementation of practical applications.
Only when the ecosystem is prosperous can the price of Ethereum be supported and the company’s stocks have room for storytelling.
Therefore, listed companies will become the biggest promoters of the token ecosystem.
Even though Ethereum founder Vitalik recently jumped out and said that centralized companies will pose a threat to decentralized Ethereum.
But thinking about it conversely, this is also a huge driving force for the development of the Ethereum ecosystem.
4️⃣ Returning to BTC, Bitcoin treasury companies will definitely promote the development of the Bitcoin ecosystem.
So how to promote it specifically?
First, Bitcoin still needs to be made liquid.
At present, after traditional institutions buy coins, they still put the coins in cold wallets or centralized custody platforms, without generating any additional income.
Therefore, if DAT company wants to increase the company’s premium, it cannot simply hoard coins. It must use digital assets to create income. Only then can there be room for narrative.
This is the intrinsic driving force of the Bitcoin ecological renaissance.
I just recently read the research report released by the Bitcoin second-layer network GOAT Network, which also explains this to the market. Its vision is also to become the income layer of Bitcoin.
Therefore, the market test faced by the DAT model is not only the death spiral caused by falling prices, but more importantly, the need to answer a question: How to use 1 US dollar of BTC to create 2 US dollars of value?
Hoarding $1 of Bitcoin can only support $1 of the company’s market value, but you need to find ways to create more premiums.
Helping digital assets build an ecosystem is one of the ways to break the situation.
