Bitwise CIO Matt Hougan: “Good DATs Do Hard Things — Bad DATs Get Punished”
Bitwise Chief Investment Officer Matt Hougan shared his perspective on the evolving Digital Asset Treasuries (DATs) market, emphasizing that only firms implementing complex and value-generating crypto strategies deserve market premiums.
Revaluation in the DAT Sector
The DAT market is currently undergoing a major revaluation, with most companies’ market net asset values (mNAVs) now leveling around 1.0. According to Hougan, while some DATs should trade at or above their NAV, others ought to trade below it.
“Buying a crypto asset and putting it on a balance sheet today isn’t hard,”
Hougan explained that with the rise of ETFs offering staking options, simple buy-and-hold strategies no longer provide a competitive edge. Instead, he highlights the importance of companies that innovate around their crypto holdings.
The Key Question for Investors
Hougan suggested the best question for evaluating DATs is whether they are doing something difficult. Firms that only accumulate digital assets, he argues, differ greatly from those constructing financial frameworks or strategic models to enhance their positions.
Example of MicroStrategy
He pointed to MicroStrategy—now rebranded as Strategy—as a leading example of a DAT successfully executing a demanding strategy. The company holds about $66.22 billion in Bitcoin against $8 billion in debt and continues to issue debt secured by that position. Hougan noted that raising such substantial equity capital for Bitcoin acquisition within a corporate structure, particularly when debt-free, is a formidable task.
Author’s summary: Matt Hougan believes that only Digital Asset Treasuries building complex and value-driven crypto strategies will sustain premiums as simpler models lose market favor.