The fluctuations in DAT stock are primarily influenced by equity dilution and changes in the net value of crypto assets per share. During bull markets, DAT amplifies its crypto holdings leverage by raising funds at a premium to purchase more cryptocurrencies. However, in bearish conditions, maintaining high valuations becomes challenging, leading to accelerated dilution and halted buybacks, creating a negative cycle. Key factors to monitor include the crypto asset content per share, mNAV premium, and financing terms. As the industry evolves, some DAT entities are exploring staking and other income-generating models, transitioning from passive holding to productive finance.
DAT Stock Dynamics Driven by Equity Dilution and Crypto Holdings
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