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"Over the past year, a wave of new Digital Asset Treasury Companies (or DATCos) has burst onto the scene, accumulating billions of dollars’ worth of crypto. For many investors, their rapid rise has been hailed as a major bullish force. However, many others have questions around how these investment vehicles actually work.
Recently, CoinGecko put out a report that cuts through the noise - and today, we’re breaking that report down for you in plain English. We’ll tell you what it reveals, what it means for the future of crypto treasury companies, and how DATCos could reshape the broader crypto market."
~ Coin Bureau
This video summarizes the "2025 Digital Asset Treasury Company (DATCO) Report" by Coin Gecko, explaining that DATCOs are publicly listed companies that have adopted crypto as part of their business model. The report categorizes DATCOs into three types: crypto mining companies, pure-play digital asset treasury companies, and companies with pre-existing business models that diversified into crypto, a model pioneered by MicroStrategy (now Strategy). The number of DATCOs has grown significantly, accumulating billions of dollars in cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). The report highlights Strategy's massive BTC holdings, making up over 61% of all BTC held by treasuries, and notes that most DATCO crypto purchases in 2025 were for BTC, followed by ETH.
The video also discusses the methods DATCOs use to fund their crypto accumulation, primarily through equity-based fundraising like Private Investments in Public Equity (PIPE) deals, At-The-Market (ATM) sales, perpetual preference shares, and convertible senior notes. It examines how adopting crypto has affected DATCO share prices, noting that a DATCO stock often goes parabolic shortly after announcing its crypto pivot. A key metric for assessing DATCO performance is the Multiple Net Asset Value (MNAV), which measures a company's enterprise value compared to its assets. An MNAV above one signals market confidence, while a value below one suggests the company is trading at a discount and may struggle to raise capital, a situation that has become common for many DATCOs, including Strategy, due to a recent market downturn. Despite the current market conditions being worse than when the report was written, the video concludes by citing indicators that suggest the crypto market may be poised for a rebound, which would organically help DATCO MNAVs recover.
0:00 Intro
0:46 Digital Asset Treasury Companies (DATCOs) Explained
4:27 Bitcoin, Ethereum and Other DATCos
8:17 DATCo Influencers
10:04 DATCO Funding
13:06 DATCo Performance And Limitations
17:38 What’s Next For DATCos And The Crypto Market?
Source - Coin Bureau YouTube: https://www.youtube.com/watch?v=KubCMji0uco
Disclaimer: This video is provided for informational purposes only, and not offered or intended to be used as legal, tax, investment, financial, or any other advice.
