Digital Asset Research Director at Matthew Sigel, investment firm Vaneck, believes that Bitcoin (BTC)’s bearish reversal will put a brake on the rise of Digital Asset Treasury (DAT) companies.
Appearing on the wolf’s All Street YouTube channel, Sigel said Dat Companies, which holds a variety of Altcoins, continues to germinate as long as Bitcoin prices remain bullish.
“I think it will last up to smaller cap coins until Bitcoin is sold. And stuff like this will be closed completely… there are no new companies, and they will play in existing sandboxes.”
According to Sigel, the sale of Bitcoin could lead to multiples of the net asset value (MNAV) of some of the existing DAT companies, including one or fewer. The MNAV below suggests that Crypto Treasury Company shares are trading at a discount, but above MNAV suggests that they are trading at a premium.
MNAV is calculated by splitting the Crypto Treasury Company’s corporate value and the net asset value of digital assets on the balance sheet.
“I think some of them will be less than a single mnav. Then there’s a branch between people who draw a line in the sand and people who say, “Look, I’m not going to dilute it by less than a single, maybe I’ll buy back stock.” They become survivors.
Bitcoin is trading at $118,282 at the time of writing, falling about 4% in the middle of this month, at its all-time high.
https://www.youtube.com/watch?v=91q3n8fck9o
Generated Image: Midjourney
