The Arbitrage Trap: Why ETH DATs trade below NAV ETH Digital Asset Treasuries (DATs) look like bargains as shares trade at a discount to the $ETH they hold. But the “cheap ETH” view misses the structural risks. Unlike ETFs, DAT shareholders can’t redeem for $ETH. Instead, they’re exposed to: >> Dilution from at-the-market equity offerings >> Operating expenses that drag on returns >> Governance concerns >> Financing risk, now heightened by tighter Nasdaq scrutiny $BTCS slipped below parity in July under idiosyncratic pressure. $SBET, $ETHZ, and $BMNR followed in August as the market repriced the whole sector. Discounts deepened when Nasdaq mandated shareholder approvals and new disclosures for DATs. History shows these discounts can persist. $GBTC stayed below NAV for 3 years until structural reform enabled redemptions. $MSTR, by contrast, has maintained a premium thanks to investor conviction in its strategy. Without buybacks or a major bull market, ETH DATs have no natural catalyst back to NAV. The discount isn’t free arbitrage, it’s a rational risk premium. -- Read the full monthly Enterprise report: messari.co/41E7y1a (Enterprise 50% off)

@immutablejacob @SharpLinkGaming @ETHZilla_ETHZ @BitMNR @NasdaqBTCS 1. No dilution below mNAV 1 2. Buybacks literally approved 3. Yield 4. Nasdaq increased scrutiny is for new companies not the existing ones 5. Will never pay for your shitty outlet Do better

@immutablejacob @SharpLinkGaming @ETHZilla_ETHZ @BitMNR @NasdaqBTCS good post. people tend to forget this stuff in bull markets lol

@immutablejacob @SharpLinkGaming @ETHZilla_ETHZ @BitMNR @NasdaqBTCS bad info. the treasury companies who have existing shelf registrations aren't subject to the new SEC guidelines. try to research first. that's allegedly your job? research?

@immutablejacob @SharpLinkGaming @ETHZilla_ETHZ @BitMNR @NasdaqBTCS They will trade below mnav. It is a certainty. The question is when?

@immutablejacob @SharpLinkGaming @ETHZilla_ETHZ @BitMNR @NasdaqBTCS SBET is no longer the asymmetric bet we hoped for — mgmt keeps diluting instead of adding torque. Unless there’s a major pivot, it’ll likely stay discounted (like GBTC pre-ETF). If you’re down: → Cut & rotate to ETH/ETHU → Or trim and moonbag for narrative revival.

@immutablejacob @SharpLinkGaming @ETHZilla_ETHZ @BitMNR @NasdaqBTCS ETH DATs feel more like a macro bet than a pure asset play structural risks are the real discount driver here

@immutablejacob @SharpLinkGaming @ETHZilla_ETHZ @BitMNR @NasdaqBTCS They will probably apply to ETF someday to save themselves and their share holders. By that they will start earning fees. It’s a triple It win win scenario for holders, company and government side as they won’t need to bail them out.