DAT Companies Continue Crypto Buying Spree, But Is It a Smart Move?

Digital-asset treasury (DAT) companies Strategy and Bitmine Immersion Technologies have continued to accumulate cryptocurrencies, despite the value of their holdings declining in recent weeks. In the week of June 14, Strategy added 520 Bitcoin tokens for $35 million, expanding its hoard to 847,363. Meanwhile, Bitmine bought 52,203 Ethereum for $92 million.

The DAT business model relies on a market value to net asset value (mNAV) ratio above 1.0, which allows companies to sell shares at a premium and use the proceeds to buy more coins. However, when the mNAV falls below 1.0, the cycle reverses, and the company's shares often decline.

Strategy is currently trading at an mNAV of 0.63, while Bitmine is at 0.97. Hyperliquid Strategies, the largest corporate holder of Hyperliquid, is an outlier with an mNAV of 1.86 and shares that have gained 98% over the past year.