Dragonfly Partners: Altcoin reserve companies have only one way to go, DAT needs a differentiated story.

Digital asset financial company (DAT) has recently seen its stock price plummet across the board, with BitMine experiencing a nearly 8% big dump in a single day. The market capitalization and volume of the zone also indicate that the market is heading towards a correction. Dragonfly partner Rob Hadick stated bluntly that, apart from a few companies centered around Bitcoin and Ethereum, reserve companies focused on other alts are doomed to fail.

BitMine leads the fall, DAT stock prices are weak across the board.

Yesterday, DAT company stock prices generally fell. According to market data:

Strategy (MSTR): fall 2.65%

BitMine (BMNR): fall 7.85%

SharpLink (SBET): fall 3.26%

Upexi (UPXI): fall 3.92%

DeFi Development Corp (DFDV): fall 4.63%

Even though Standard Chartered Bank has pointed out that ETH reserve companies are undervalued and suggested buying on dips, the capital market still seems to be considering whether to buy in, and investors are reassessing the overall valuation model of DAT.

( BitMine fell nearly 8%, Ark's Cathie Wood added $15.6 million to buy in ).

Premium retreat: ETH and SOL gradually stabilize, BTC remains relatively stable.

Blockworks Research data shows that the mNAV multiples of different crypto assets have clearly diverged. First, the mNAV of ETH and SOL fluctuated dramatically, but after the pullback, it still slightly maintained above 1, reflecting a higher acceptance of these assets by traditional market investors. The rapid decline of mNAV for other altcoin reserve companies highlights the market's premium expectations for these assets, which rise quickly and fall just as fast.

The BTC reserve company is relatively stable, with mNAV maintained around 1.5 to 2 times for a long time, indicating that Bitcoin remains the core asset that investors have the most confidence in.

This trend reflects that if a company relies solely on a certain token reserve to package a seemingly intangible transformation, it will sooner or later face a market valuation correction.

Volume comparison: MSTR leads, other companies quickly decline.

In terms of volume, MSTR is far ahead, with daily trading amounts often reaching 4 to 8 billion USD, far exceeding other DATs. Although BMNR and SBET experienced short-lived peaks in trading volume during specific periods, they subsequently fell back to around 2 to 4 billion USD and 500 million to 1.5 billion USD, respectively. Not to mention other DATs, which can be said to be fleeting.

In the current market situation, where traditional finance's willingness to invest in cryptocurrency concept stocks is relatively limited, it can be seen that most investors' value investments are still focused on BTC reserve companies, while others are mostly accompanied by short-term speculation, resulting in significant volatility.

Dragonfly General Partner: Altcoin Reserve Enterprises Are Destined to Fail

Regarding this phenomenon, Dragonfly general partner Rob Hadick stated plainly: "Non-MSTR DATs lack a future, especially those companies primarily focused on alts other than BTC, ETH, and SOL."

He emphasized that in recent months, capital market games such as fast listings, premium trading, and massive dilution of shareholders are all dead ends now.

If you want your DAT to succeed, you need a differentiated story that aligns with your crypto asset ecosystem and can create value over time, rather than just being alchemy for the capital markets.

In other words, the reason MSTR can maintain its position is that it has preached the underlying meaning and value of Bitcoin to the public. In contrast, those DATs that rely solely on stacking low market capitalization tokens and are focused on premium listings have already lost market patience.

The future of DAT depends on "story" and "value".

DAT, as an emerging capital market product, is rapidly gaining popularity due to its combination of crypto assets and traditional finance, and is now facing a test. Market data reflects that investors are no longer buying into mere financial packaging, but are demanding these companies to demonstrate ecological strategies that align with the underlying assets.

This article Dragonfly Partner: Altcoin reserve companies have only one way to die, DAT needs a differentiated story first appeared in Chain News ABMedia.