Why “Doing Hard Things” Is the Only Way to Save Your DAT

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Bitwise Chief Investment Officer Matt Hougan has weighed in on the growing debate over Digital Asset Treasuries (DATs). Apparently, the secret sauce to surviving this digital asset chaos isn’t about holding onto your crypto assets like a hoarder collecting vintage Beanie Babies. No, no. It’s about doing complex, mind-bending things that make the crypto world say, “Wait, you actually did that?”

The comments come as the DAT sector goes through something akin to an existential crisis. Most firms’ market net asset values (mNAVs) have converged toward the incredibly “exciting” value of 1.0, because who doesn’t love a market where everyone is barely keeping their heads above water?

Matt Hougan: Only “Hard” DATs Deserve Market Premiums (If You Can Call It That)

Hougan explained that some DATs should trade at or above their NAV (the value that makes investors say “Hmmm, maybe?”), while others should trade at or below their NAV. The key question to ask yourself in the middle of all this digital asset mess is: Are they doing something hard? (You know, the kind of “hard” that actually requires a brain cell or two to execute?)

1/ A lot of people have asked me what I think of DATS. My view: Some DATs should trade above NAV and others should trade below NAV.

A thread on how to tell the difference.

– Matt Hougan (@Matt_Hougan) November 5, 2025

Hougan isn’t here to pander. He’s here to separate the crypto boys from the crypto men. Those who merely buy and hold crypto assets are the low-hanging fruit of the industry. Meanwhile, the ones who actually build intricate financial structures around their holdings? Those are the DATs worth their weight in, well, something valuable.

“Buying a crypto asset and putting it on a balance sheet today isn’t hard,” he said, adding that ETFs now offer staking options that replicate the same exposure with lower friction (and fewer existential crises, probably).

And then there’s MicroStrategy (now “Strategy,” because they’re all about rebranding when it suits them), which gets the gold star for doing something not just hard, but downright daring. They own $66.22 billion of Bitcoin against $8 billion of debt. Sure, it’s a bit risky, but hey, what’s a little financial acrobatics among friends?

Hougan gives kudos where kudos are due, noting that raising this much equity capital to buy Bitcoin in a corporate structure-while debt-free, no less-is not for the faint of heart. But let’s be real, the faint of heart aren’t getting market premiums in this wild ride.

Why “Doing Hard Things” May Define the Next Phase of DAT Survival (Spoiler: It’s the Survival of the Fittest)

As the Bitwise executive (who apparently has no time for mediocre crypto plays) points out, the ability to leverage corporate financing tools like convertible debt or preferred shares to amass more Bitcoin gives firms like MicroStrategy a leg up. The trick is executing this with such finesse that you actually earn that sweet, sweet market premium. Otherwise, you’re just another DAT holding on to crypto like it’s a lifeboat in a sea of disappointment.

“There are other interesting things DATs can do that are hard,” he added, pointing to strategies like writing covered calls, carefully engaging in DeFi, or making clever loans. They’re not necessarily good ideas, but at least they’re complicated and potentially profitable. If you pull them off well, you might just get rewarded (or you’ll end up in the cryptosphere’s version of the doghouse, which is probably somewhere dark and filled with overpriced NFTs).

On the other hand, Hougan takes a no-nonsense approach to DATs that try to take the “lazy approach” by simply holding crypto assets. These firms are going to be trading at a discount to their underlying holdings faster than you can say “blockchain bubble.”

“In the end, DATs are just companies,” he said. “Good companies get rewarded for doing hard things well over time. Bad companies that execute poorly or try to take the easy route to riches get punished.”

So, as the DAT sector finds itself in the midst of a reassessment (and let’s be honest, probably a few sleepless nights), the message is clear: If you want to survive in this market, get ready to do some heavy lifting. Because, according to Hougan, “doing hard things” is probably the only way forward.

The market’s recalibration follows reports that Metaplanet’s mNAV slipped below parity (0.99) despite strong revenue growth. But don’t worry, Metaplanet has bounced back, and so has the broader trend toward more cautious valuations. Because who doesn’t love a market where nothing’s certain and everything feels like a gamble?

And so, in this exciting world of digital asset madness, doing “hard things” might just be the defining trait of which firms get to live to see another blockchain boom. Or, you know, get lost in the ever-expanding abyss of irrelevance.

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2025-11-06 10:08