The post Bitwise CIO Reveals Structural Flaws appeared on BitcoinEthereumNews.com.

Are crypto-hoarding firms setting themselves up for failure? According to Bitwise’s Chief Investment Officer Matt Hougan, companies adopting Digital Asset Treasury strategies face an uphill battle maintaining their stock premiums. This revelation sends shockwaves through the cryptocurrency investment community. Why Crypto-Hoarding Firms Can’t Sustain Premiums Matt Hougan recently took to social media platform X to explain the structural challenges facing crypto-hoarding firms. He argues that most companies implementing DAT strategies will eventually trade at negative premiums. The core issue lies in fundamental business dynamics that work against these firms over time. Hougan identifies three major burdens that accumulate and devalue DAT strategies: Corporate operating costs that continuously drain resources Liquidity problems that limit financial flexibility Execution risks that threaten strategy implementation The Growth Challenge for Crypto-Hoarding Companies What methods can crypto-hoarding firms use to increase their crypto holdings per share? According to Hougan, the options are both limited and uncertain. For the strategy to maintain value, growth must be continuous and substantial. However, most crypto-hoarding firms struggle with this requirement. The structural dynamics create a scenario where the burdens outweigh the benefits. Consequently, these companies face mounting pressure that eventually leads to discounted trading. What This Means for Crypto-Hoarding Investors Investors in crypto-hoarding firms should understand the inherent risks. The premium sustainability issue affects long-term value creation. While short-term gains might appear attractive, the structural challenges pose significant threats. Hougan’s analysis suggests that crypto-hoarding firms need more than just cryptocurrency exposure to succeed. They require robust business models that can withstand the accumulating burdens he describes. The Future of Digital Asset Treasury Strategies Will all crypto-hoarding firms face this premium decline? Hougan believes most will eventually trade at discounts. The structural factors he identifies create persistent headwinds that are difficult to overcome. This doesn’t mean DAT strategies are doomed. However,…

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Filed under: News - @ November 24, 2025 3:10 am