Tom Lee: Is the rise in crypto company stock prices due to rising coin prices or reserve strategies?

By Thomas (Tom) Lee (not drummer) FSInsight.com

Compiled by: TechFlow

Understanding DAT* (Digital Asset Treasury) and BTC/ETH Treasury Strategy

* This post has been approved by @saylor (MicroStrategy CEO)

Case Study: $MSTR Creates Template for Crypto Treasury Strategy.

Since the start of the $BTC strategy in 2020, Strategy’s stock price has surged from $13 to $455.

question:

How much of the stock price increase is due to the increase in the price of Bitcoin, and how much is due to crypto reserve strategies?

Behind the 35-fold increase in $MSTR stock price:

• 11 times due to the increase in the price of Bitcoin ($BTC) from $11,000 to $118,000
• 25 times from treasury strategy
• That is, the number of bitcoins held per share increases

The impact of the treasury strategy goes far beyond the increase in token price.

$MSTR’s DAT (Digital Asset Treasury) strategy increases the number of tokens held per share by:

• Issued shares > P/NAV (market value) = Number of tokens per share increases
• Price volatility of tokens reduces borrowing costs = higher return on investment (ROI)
• Use convertible bonds/preferred stock = limit equity dilution

By the way:

• $ETH is more volatile than $BTC
• Therefore, this volatility has a greater impact on ETH DAT than BTC DAT.

@grok created the following table (excerpt)

Note from Deep Tide: This table shows some of MicroStrategy's (MSTR) financing activities since it began to include Bitcoin as part of its treasury in 2020. These include internal cash, Convertible Senior Notes, Senior Secured Notes, Secured Loans, and ATM Equity Programs, almost all of which were used to purchase Bitcoin.

Bitmine announced its ETH treasury strategy on June 30, 2025, and completed the transaction on July 9, 2025.

The $MSTR example shows that buying tokens can:

• Increase the number of tokens per share

$BMNR 7 days after initial transaction:

• Acquired $1 billion worth of ETH

$MSTR acquired $250 million in tokens in the same time frame