Author: Thomas (Tom) Lee (not drummer) FSInsight.com
Compiled by: Deep Tide TechFlow
Interpretation of DAT* (Digital Asset Treasury) and BTC/ETH treasury strategies
*Post has received approval from @saylor (MicroStrategy CEO)
Case Study: $MSTR created the template for cryptocurrency treasury strategies.
Since implementing the $BTC strategy in 2020, the stock price of the Strategy soared from $13 to $455.
Question:
How much of the stock price increase is attributed to the rise in Bitcoin price, and how much is attributed to the cryptocurrency reserve strategy?
Behind the 35 times increase in $MSTR stock price:
11 times from Bitcoin ($BTC) price rising from $11,000 to $118,000
25 times from treasury strategy
that is, the number of Bitcoins held per share increased
The impact of treasury strategies far exceeds the increase in token prices.
$MSTR's treasury DAT (Digital Asset Treasury) strategy increases the number of tokens held per share in the following ways:
Issue shares > P/NAV (Price to Net Asset Value) = Increase in tokens per share
Price volatility of tokens reduces borrowing costs = Higher Return on Investment (ROI)
Using convertible bonds/preferred stocks = Limit equity dilution
By the way:
$ETH's volatility is higher than $BTC
Thus, this volatility has a greater impact on ETH DAT than on BTC DAT.
@grok created the following table (excerpt)
Deep Tide Note: This table shows some of MicroStrategy (MSTR)'s financing activities since it began using Bitcoin as part of its treasury in 2020. This includes internal cash, convertible senior notes, senior secured notes, secured loans, and ATM equity program, with almost all funds used to purchase Bitcoin.
Bitmine announced its ETH treasury strategy on June 30, 2025, and completed the trade on July 9, 2025.
$MSTR's example shows that buying tokens can:
Increase the number of tokens per share
$BMNR on the 7th day after the initial trade completed:
Acquired $1 billion worth of ETH
$MSTR acquired $250 million in tokens in the same period
That's all the content.
