Something Interesting Is Happening in the World of DATs

This week, ETHZilla – a company known for constantly buying and holding ETH – sold $40 million worth of Ethereum to buy back its own shares.

I used to think that a "digital asset treasury" wasn’t really a business. Turning into a DAT looked more like leaving the business world. When things go wrong, you can always throw your remaining cash into crypto, figuring it can’t get much worse. And if you’re lucky, maybe you’ll pull a MicroStrategy: explosive growth, global fame, and no real business required.

Even the market seemed to get that. Many DATs traded below the value of the crypto they held — because, well, there was no actual business behind them. What are you investing in, then?

But it turns out, for some, that was the business model: sell the crypto when it pumps, use the proceeds to buy back your own cheap shares — and the difference becomes pure profit. Profit you don’t even have to share with investors... because they no longer hold any shares.

Meanwhile, Strategy, which doesn’t sell and just keeps stacking Bitcoin year after year, was downgraded to junk status by S&P Global — a B- rating, with a stable outlook. Meaning: as long as they refuse to sell their BTC, they’ll remain “junk.”

But here’s the real risk:
If all DATs start following ETHZilla’s example instead of Strategy’s one, we could see a race to dump crypto while prices are still high — triggering a death spiral for the market.

And yet… if that spiral drags Bitcoin down too, I’m pretty sure Strategy will be there to buy more.
Would you?

If yes, the best rates for USDT → BTC are always available on rabbit.io.