Yes, treasury companies should trade at a premium to NAV What? 🧵

There’s a lot of friction and inefficiency between tradfi and crypto right now. We’re in the early days of convergence

Treasury companies ease some friction: DAT can stake or do defi while ETF can’t Maybe the token doesn’t have an ETF Or the token can’t be bought easily in the US Or equities and crypto have diff tax like in Japan Or debt investors want exposure to the token through converts

⬆️ that’s what I mean by friction and inefficiency

Now let’s do the (financial) math. If you can stake all the ETH in a DAT, its intrinsic value should be higher than a 1.0mNAV. More like 1.2-1.3x

Then add in some of the other factors and you get a higher mNAV

And if the company can grow their tokens/share consistently, intrinsic value of the mNAV should be higher. Issuing equity at a high mNAV grows tokens per share quickly

Will these frictions last forever? Absolutely not. Are DATs serving a market need today? 💯

As more traditional funds onboard to trade tokens, some of the inefficiencies go away. That’s just starting to happen, but will still take time (This is actual convergence)

Oh and 100% DATs help to educate tradfi investors about protocols, preparing them for token trading