askARK What Are Digital Asset Treasuries (DATs)?

Definition of Digital Asset Treasuries - Digital asset treasuries are public companies focused on accumulating Bitcoin, Ethereum, or other digital assets [1] - These companies arbitrage the price difference between their market cap and the value of their digital asset holdings [1][2] Funding Mechanisms - They raise capital through at-the-market offerings, debt issuance, or convertible bonds [1] - The raised capital is used to acquire more digital assets [1][2] Market Dynamics - These companies often trade at a net asset value (NAV) premium, meaning their market cap exceeds the value of their balance sheet [2] - They can issue more shares at a higher price due to the premium, further accumulating assets [2] Goal - The ultimate goal is to increase the amount of ETH or Bitcoin per share [2]