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Bitwise CIO: Evaluating DAT Company using mNAV is not correct, and a divergence in trends will appear in the future.
On November 24, Bitwise Chief Investment Officer Matt Hougan stated that evaluating DAT companies based on mNAV is incorrect because this valuation method does not take into account the lifecycle of listed companies. “Assume you have a Bitcoin DAT that announces it will close this afternoon and distribute Bitcoin to investors. Its trading price would be exactly equal to the value of its Bitcoin (mNAV is 1.0).” Matt Hougan analyzed that there are three main reasons for the discount in DAT trading prices: insufficient liquidity, high fees, and high risk. The only reason for a premium in DAT (limited to the U.S.) is whether it has increased the value of the Crypto Assets per share. Most of the reasons for DAT trading at a discount are certain, while most of the reasons that could lead to premium trading are uncertain. Therefore, most DATs will trade at a discount, with only a few exceptions trading at a premium. Over the past six months, the price fluctuations of DATs have been fairly consistent. Looking ahead, their price differences will become more pronounced. A few DATs perform well and trade at a premium; while many DATs perform poorly and trade at a discount.