BlockBeats News, December 4th, CZ responded to the question “Recently, Decrypt-as-a-Treasury (DAT) companies have come under significant pressure, and many people are skeptical about the future of Decrypt-as-a-Treasury companies. Do you think this model is sustainable?” during the “KOL and Media Interaction” session, saying: “First, I think the basic logic of the DAT model is feasible. Its role is to enable traditional companies that do not have the ability to directly purchase Bitcoin or cryptographic assets to gain exposure to cryptographic assets.
Because MicroStrategy has been very successful, everyone wants to imitate it. But the current situation is that different treasuries have different management fee structures, and the lower the management fee of DAT, the better. Overall, there is indeed risk in the DAT model, and the specific risk level largely depends on the management team, organizational structure, and management philosophy. But fundamentally, it is entirely feasible for public companies to purchase high-quality cryptographic assets. Holding these assets, they will appreciate. Simply holding Bitcoin has been one of the best strategies in the past 10-15 years, even ahead of 99% of startups and other investment strategies. Therefore, this model is feasible and can create value.
Of course, this still depends on the management team and their philosophy. Sometimes, when a concept becomes overheated, everyone wants to do DAT, resulting in too many treasury companies, some of which will fail, and some may exit early, but those robust treasury companies will continue to grow. In summary: the DAT model is feasible, but the key lies in the management team, structure, management philosophy, and the ability to choose and execute in an overheated environment.”
