An investor is sounding the alarm against buying Digital Asset Treasury (DAT) stocks, offering a clear alternative: acquire Bitcoin directly instead. This warning is aimed at both retail and institutional investors who seek Bitcoin exposure through the stock market, as these companies introduce an extra layer of risk beyond the cryptocurrency itself.
Context and Impact of DATs and Bitcoin
This perspective is backed by recent examples. MicroStrategy is the quintessential case; as of mid-2025, it holds over 632,457 Bitcoin in its treasury. This makes its stock a leveraged proxy for Bitcoin, amplifying both its price gains and its declines. This structure also adds operational risks tied to corporate debt and management decisions.
Other companies, like GameStop, have accumulated around 4,710 Bitcoin on their balance sheets. Even smaller firms such as Volcon have pivoted to this strategy, which has fueled speculation around their stock prices.
Central Argument and Market Commentary
The core argument is straightforward: buying a DAT stock means taking on two distinct layers of risk. The first is Bitcoin’s inherent volatility. The second is company-specific risk, which includes management competence, leverage, and overall business execution. This secondary risk can cause a stock to fall even when Bitcoin’s price is rising.
This comes amid broader market commentary. Howard Marks has warned about “market froth,” suggesting certain sector valuations may be unsustainable. In parallel, figures like Robert Kiyosaki have praised Bitcoin as “people’s money,” and even former skeptics like Larry Fink have shifted their stance to acknowledge the asset’s growing role.
Implications and Practical Considerations
For traders and corporate treasuries, this recommendation has clear practical effects: gaining direct exposure to Bitcoin removes the corporate risk layer and simplifies digital asset management. For institutional managers, the choice between a DAT stock and direct Bitcoin should involve a careful analysis of the issuing company’s liquidity, funding, and governance.
Of course, buying Bitcoin directly comes with its own technical and custody risks—like the threat of losing private keys—but these are distinct from the risks of investing in a publicly traded company.
For those seeking pure exposure to Bitcoin’s price movement, acquiring it directly is the recommended path to avoid additional corporate risk. As of mid-2025, MicroStrategy remains the largest corporate holder with over 632,457 Bitcoin, a position that continues to heavily influence its stock valuation and the decisions of investors worldwide.
