Crypto DATs: Future Giants Like Berkshire?

Introduction: DATs from speculative tools to long-term pillars

In crypto circles, Digital Asset Treasury (DAT) firms are increasingly viewed as more than passive holders of digital assets. Analyst Ryan Watkins argues that if DATs continue as mere speculative vehicles, they risk obsolescence. Yet if they evolve to deploy capital, run businesses, and expand ecosystems, they could become foundational organizations — akin to Berkshire Hathaway in the equities world.

Current scale and growth potential

Watkins estimates DATs collectively manage about $105 billion in crypto, spanning bitcoin, ether, and major tokens. While many DATs might falter under financial stress or missteps, those that channel these holdings into productive operations — like staking, liquidity provision, or node management — can become critical infrastructure players in blockchain ecosystems.

Beyond speculation — turning treasuries into operating engines

Watkins argues future-winning DATs won’t just hold tokens waiting for appreciation. Instead, they will use their holdings to engage deeper: staking for network fees, supplying liquidity, lending, running nodes or exchanges, acquiring components like RPC endpoints or validators. This transforms a DAT’s balance sheet into an income-generating machine, not just a vault.

Hybrid financial models and the Berkshire analogy

Under Watkins’ view, successful DATs will mix features of closed-end funds, REITs, and banks. However, their edge lies in returns accruing in crypto per share, not traditional management fees. They’ll also leverage equity, convertibles, preferred instruments, and blockchain yields to manage capital expansion and costs.

Risks, competition, and endurance

Watkins cautions that many DATs won’t survive. The ones overly dependent on financial engineering and lacking operational depth may fade as market conditions normalize. He foresees consolidation, experiments in exotic finance, and ambitious balance sheet plays. The survivors will be those marrying disciplined capital allocation, strong governance, and ecosystem-building capacity.

Conclusion: A new era for DATs

Watkins believes top-tier DATs could emerge as the Berkshire Hathaways of their blockchains — enduring institutions with productive balance sheets and central roles in their ecosystems. Yet to reach that status, they must transcend speculation, focus on operations, and scale business activities alongside asset accumulation.

Disclaimer: This article is intended solely to provide information and market insights at the time of publication. We make no promises or guarantees regarding performance, returns, or the absolute accuracy of the data. All investment decisions are the sole responsibility of the reader.