Bitwise CIO: Firms holding crypto reserves will struggle to sustain premiums

Companies implementing a Digital Asset Treasury (DAT) strategy will find it difficult to maintain a high stock premium, according to an analysis by Bitwise Chief Investment Officer (CIO) Matt Hougan. In a post on X, Hougan argued that factors such as corporate operating costs, liquidity issues, and execution risks inherently devalue a DAT strategy. He noted that, conversely, the methods for consistently increasing the amount of cryptocurrency held per share are limited and uncertain. Hougan stressed that while operational costs and various risks accumulate over time, the value of the strategy is only sustained if the crypto holdings per share continue to grow. He concluded that due to these structural factors, most companies with a DAT strategy will eventually trade at a negative premium.