Financial Advisor: Crypto Treasures Could Be Berkshire Hathaway

Ryan Watkins, a partner at Syncracy Capital, states that Digital Asset Treasury (DAT) companies hold crypto assets worth a total of $105 billion and could evolve into long-term ecosystem players over time.

Watkins expresses his belief that successful DATs will use their assets to run operations, finance growth, and even influence governance. He likens this potential to giants like Berkshire Hathaway. However, he also emphasizes that only well-managed DATs can exist beyond today's speculative era.

DAT companies are publicly traded companies that hold crypto assets. In a blog post published on September 23, he stated that these firms hold significant amounts of assets, including Bitcoin, Ethereum, and other major assets. This presents a scale that market participants have not yet fully assessed. Watkins suggests that a certain portion of these companies has the potential to evolve into resilient businesses to finance, participate in governance, and build within their respective ecosystems.

Watkins stated that many investors focus their attention solely on short-term trading dynamics, but the truly important thing is to see a broader perspective. "We envision elite DATs evolving into for-profit, publicly traded counterparts with broader mandates against crypto fundamentals," he says. He underlines that because some DATs already control significant token supplies, their treasuries can be more than just vaults, also influencing politics and products.

Watkins highlights the importance of scaling with crypto-centric examples like Solana and Hyperliquid. For instance, RPC providers and proprietary market makers with more SOL stakes can improve transaction networks; while first layers with more HYPE stakes can reduce user fees or increase revenue shares. Access to permanent native asset pools can facilitate the scaling of such businesses.

Watkins compares this situation to programmable money and productive balance sheets. He believes that MicroStrategy's current structure, known for its BTC-focused strategies, does not stand out as a programmable asset. In contrast, while tokens on smart contract platforms (ETH, SOL, HYPE) can be used in circulation, DATs have various opportunities such as staking these tokens to earn income, provide liquidity, and participate in governance.

He believes that only DATs achieving specific successes can create a sustainable structure akin to Berkshire Hathaway's equity. However, he warns, "Not all DATs will succeed." He predicts that many first-generation vehicles, with their heavily financially engineered structures, will eventually exit the scene.