Ethereum DAT Treasury Strategy Company: When will they sell ETH

Good ending 1 - When the price of cryptocurrency assets significantly exceeds their cost of acquiring, they cash out under shareholder/tax requirements, although the withdrawal address will slightly affect unrealized gains. MicroStrategy has previously withdrawn some coins to "optimize taxes", which did not cause a settlement or a market crash. However, for their scale of funds - it does not matter.

3000 average cost 6000 sell, large funds are already very happy. If they have made enough money, human nature is to replicate their successful path. Those who started with Ethereum DAT may try to do other altcoins in the future, and at that time they may switch cars.

Ordinary ending 1 - Hedging and selling If they believe that the asset they hold is about to peak, they will stop buying and even prepare to sell. Even if their on-chain addresses are transparent, it does not prevent them from discreetly hedging through contracts and options, thus retaining a small portion of the victory fruits.

Ordinary Ending 2 - No One Cares If mNAV remains below 1 for a long time, the company will consider that continuing to issue stock is a loss, so at this time it may sell some coins to appropriately pull back mNAV.

In my experience, among all the anchors in the world, only the "two-way hard currency anchor" is effective. Relying solely on "psychological anchors" without projects can lead to bad outcomes. 1- Funding pressure, for example, Tesla in 2022, had to sell 3/4 of its Bitcoin holdings due to funding pressure.

These institutions may also face similar financial pressures at some point in the future.

Bad ending 2 - Stop loss If the reverse operation is wrong, and the cost of building positions is significantly higher than the current price, the entire game cannot continue. One day, one can only stop loss and try to recover through a lower bottom. Of course, these are just long-term endgame speculations and do not represent my current bearish view or negative opinion on DAT.

When the drums are still beating, we should continue to play music and dance. As for when the drums stop? That will be shared in the next post, focusing mainly on three key indicators: cost of building positions, changes in CEO/CFO/board personnel, and mNAV remaining below 1 for a long time.