Digital-Asset Treasury Companies Continue to Accumulate Crypto. But Are Any of Them Worth Buying?
View original at nasdaq.comDigital-Asset Treasury Companies Continue to Accumulate Crypto. But Are Any of Them Worth Buying? Key Points Most digital-asset treasury companies have not been doing well lately…
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Bitcoin has a hard cap of 21 million coins, and Strategy's hoard represents approximately 4% of all Bitcoin ever, which tightens the liquid float and creates a tailwind for Bitcoin holders
60% confidenceStrategy was not identified by the Motley Fool Stock Advisor analyst team as one of the 10 best stocks for investors to buy now
60% confidenceEthereum has no hard cap and its supply is often slightly inflationary, so Bitmine's 4.7% share of outstanding supply does not produce the same float-tightening effect as Bitcoin accumulation
60% confidenceDAT companies claim they are happy to accumulate cryptocurrencies while they are on sale because they are confident it will be a good decision in the long run
60% confidenceMotley Fool Stock Advisor has delivered a total average return of 892%, compared to 205% for the S&P 500
60% confidenceThere aren't really any digital-asset treasury shares that are worth owning, because spot crypto ETFs offer comparable exposure at 0.2–0.3% annually without the overhead, debt service, dilution, and governance risks of DAT companies
60% confidenceBuying DAT shares bundles every coin with corporate overhead costs, debt service expenses, premium volatility, dilutive issuance at management's discretion, and governance risk from both company management and underlying asset leadership
60% confidenceAbove an mNAV of 1.0, a DAT company can sell shares at a premium to buy more coins than the dilution caused by new share issuance, creating a virtuous flywheel; below 1.0 the cycle reverses and usually spells serious trouble for shareholders
60% confidenceSpot crypto ETFs often charge expense fees of just 0.2% to 0.3% annually, making them very comparable to the costs of holding coins directly in a crypto wallet
60% confidenceAuthor holds Hyperliquid Strategies because ETFs holding Hyperliquid are not yet available, but acknowledges it is still probably better to buy the underlying asset directly
60% confidence