DAT Stocks Are on Sale. Are They a Buy? Plus, Why Crypto Is Dead - Ep.985 - Unchained Recap

Podcast: Unchained

Published: 2025-12-20

Duration: 54 minutes

Guests: Steven Ehrlich, Dougie DeLuca

Summary

Crypto treasury stocks, once at premiums, are now at discounts, posing a long-term investment opportunity. Meanwhile, blockchain infrastructure is mainstreaming, leaving traditional crypto culture behind.

What Happened

Bitcoin and Ethereum prices have significantly dropped, affecting the valuations of Digital Asset Treasury (DAT) stocks, which are now trading at discounts compared to their crypto holdings. Steven Ehrlich explains that many DATs, such as 21 Capital and Similar Scientific, are valued at less than their net asset value (NAV), despite previous premiums during the bull market. He clarifies that this discount is not easily arbitrageable and requires a long-term investment perspective.

DATs like Ether Machine are experiencing the largest discounts due to complex business situations, such as pending agreements. Some companies are attempting to rectify their stock values with share buybacks, although these strategies are often limited in their effectiveness. Ehrlich warns investors to be cautious about headline numbers in buyback programs as they might not be fully executed.

Dougie DeLuca from Figment Capital argues that the traditional crypto market is being overshadowed by fintechs and institutions that are adopting blockchain for mainstream applications. He suggests that the crypto culture, which relies heavily on incentives like liquidity mining, is unsustainable and may fade as the industry matures.

DeLuca points out that successful adoption of blockchain technology involves reaching real-world users beyond the current crypto-native audience. He cites Robinhood as an example of a company that has successfully diversified its offerings to meet user needs, hinting at a future where the crypto label could become baggage.

Companies like Coinbase and Stripe are well-positioned for this new phase of crypto adoption, while startups are shifting marketing strategies to platforms like TikTok to reach new audiences. DeLuca also discusses the potential for companies to use blockchain technology without explicitly marketing it as 'crypto,' similar to how cloud computing is utilized for its benefits.

The episode concludes with a discussion on whether the traditional four-year Bitcoin cycle is still relevant, given the increased adoption of blockchain technology and the emergence of independent business models. This shift in the landscape suggests that the crypto market may be moving beyond its speculative roots.

Key Insights