As per CoinEdition, Bitwise Chief Investment Officer Matt Hougan outlined structural challenges facing Digital Asset Treasuries (DATs), stating that most will trade at a discount due to unavoidable downward pressures such as illiquidity, operating expenses, and execution risk. Hougan explained that only a few exceptional DATs can sustainably increase crypto-per-share and earn a premium. He argued that DATs must evolve into fully operational companies to survive, as relying on passive crypto-holding models is unsustainable. Hougan identified limited paths to premiums, including debt issuance, token lending, and strategic acquisitions, but emphasized that these require strong execution. He warned that the drag on valuations will grow over time, forcing differentiation in the sector.
Bitwise CIO Matt Hougan Explains Why Most DATs Will Trade at a Discount
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