DAT longevity hinges on avoiding ‘mNAV roller coaster’: Solmate CEO

Marco Santori, CEO of Solmate, argues that the long-term success of Digital Asset Treasury (DAT) companies hinges on avoiding the volatile multiple-to-net-asset value (mNAV) model. Pure-play DATs often rely on selling stock when their market cap exceeds their underlying token value (high mNAV) to buy more tokens, a cycle that breaks when interest in the token wanes, causing mNAV to drop. Santori prefers a strategy focused on generating revenue through infrastructure services, specifically bare-metal validator services for proof-of-stake protocols like Solana. By offering high-performance hardware and co-location services to entities like hedge funds, Solmate earns cash that is reinvested into buying SOL, creating a 'virtuous cycle' independent of the mNAV roller coaster. This approach aligns with Solmate's recent acquisition of RockawayX's validator infrastructure, aiming for sustainable growth.

(Source：Cointelegraph)