Author: Thomas (Tom) Lee (not drummer) FSInsight.com
Compiled by: Deep Tide TechFlow
Interpretation of DAT* (Digital Asset Treasury) and BTC/ETH treasury strategies
* The post has been approved by @saylor (MicroStrategy CEO)
Case Study: $MSTR created a template for cryptocurrency treasury strategies.
Since implementing the $BTC strategy in 2020, the stock price of Strategy has skyrocketed from $13 to $455.
Question:
How much of the stock price increase is attributed to the rise in Bitcoin prices, and how much is due to the crypto reserve strategy?
Behind the 35-fold increase in $MSTR's stock price:
11 times comes from Bitcoin ($BTC) price rising from $11,000 to $118,000
25 times comes from the treasury strategy
That is, the number of Bitcoins held per share has increased
The impact of treasury strategies far exceeds the rise in token prices.
$MSTR's treasury DAT (Digital Asset Treasury) strategy increases the number of tokens held per share by:
Issuing stock > P/NAV (Price to Net Asset Value) = Increase in the number of tokens per share
Price fluctuations of tokens reduce borrowing costs = Higher Return on Investment (ROI)
Using convertible bonds/preferred stock = Limiting equity dilution
By the way:
$ETH has higher volatility than $BTC
Therefore, this volatility has a greater impact on ETH DAT than BTC DAT.
@grok created the following table (excerpt)
Deep Tide Note: This table showcases some of MicroStrategy (MSTR)'s financing activities since 2020, when it began using Bitcoin as part of its treasury. 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 transaction on July 9, 2025.
$MSTR's example shows that purchasing tokens can:
Increase in the number of tokens per share
$BMNR on the 7th day after the initial trade was completed:
Acquired $1 billion worth of ETH
$MSTR acquired $250 million worth of tokens in the same period
