Opinion: Digital Asset Finance (DAT) companies are seen as hype and the next bubble in the crypto market.

According to Odaily Planet Daily, DATs provide investors with exposure to the underlying digital assets by packaging crypto assets within securities regulated by the U.S. Securities and Exchange Commission (SEC), and aim to outperform the underlying assets through strategies that maximize returns. A key metric for measuring the performance of DATs is market capitalization net asset value (mNAV), which compares the company's enterprise value with the value of its digital asset holdings.

Investment bank Macquarie points out that the viability of DATs is closely tied to their equity premium relative to net asset value. If this premium erodes or turns into a discount, the model will face significant challenges. When the crypto market corrects, mNAV could fall below 1, meaning companies are trading below the value of their crypto asset holdings, potentially forcing DATs to sell some tokens to obtain liquidity.

Carol Alexander, a finance professor at the University of Sussex, stated that the DAT model appears to have attracted many participants driven by marketing, hype, and easily accessible capital, rather than based on enduring business fundamentals, and that the sector is currently in a bubble. James Butterfill, head of research at CoinShares, also stated that "the bubble has clearly burst," but expects DAT to evolve in the future. Strategy has announced a $1.44 billion reserve to support dividend payments and debt repayments, attempting to protect itself from the market downturn. (CNBC)