Opinion: Digital Asset Financial Company (DAT) is seen as a speculation in the crypto market and the next bubble.

Odaily News DAT provides investors with exposure to underlying digital assets by packaging encrypted assets in securities regulated by the SEC, aiming to outperform the performance of the underlying assets through a strategy of maximizing returns. The key metric for measuring the performance of DATs is the market net asset value (mNAV), which compares the company's enterprise value with its digital asset holdings value. Investment bank Macquarie notes that the viability of DAT is closely related to the equity premium relative to net asset value. If this premium erodes or turns into a discount, the model will face significant challenges. When the crypto market pulls back, mNAV may fall below 1, meaning the company's trading price is lower than its crypto asset holdings value, which may force DATs to sell part of their tokens to obtain liquidity. Carol Alexander, a finance professor at Sussex University, stated that the DAT model seems to attract many participants driven by marketing, hype, and easy-to-access capital, rather than based on enduring business fundamentals, and the sector is currently in a bubble. CoinShares research director James Butterfill also stated, “The bubble has clearly burst,” but expects that DAT may evolve in the future. Strategy has announced the establishment of a $1.44 billion reserve to support dividend payments and debt repayments, attempting to protect itself from the impact of market downturns. (CNBC)