Tom Lee: Is the rise in crypto stock prices due to the rise in currency prices or the reserve strategy?

Tom Lee: Is the rise in crypto stock prices due to the rise in currency prices or the reserve strategy?
TechFlow
TechFlow
BTC-1.51%
ETH+0.61%

Author: Thomas (Tom) Lee (not drummer) FSInsight.com

Compiled by: Deep Tide TechFlow

Interpret DAT* (Digital Asset Treasury) and BTC/ETH Treasury strategies

*Post has been agreed by @saylor (MicroStrategy CEO).

Case Study: $MSTR created a template for a crypto treasury strategy.

  • Since the implementation of the $BTC strategy in 2020, Strategy's stock price has soared from $13 to $455.

Issue:

How much of the rise in stock price is due to the rise in the price of Bitcoin and how much is due to the crypto reserve strategy?

Behind the 35x increase in $MSTR stock price:

  • The 11x stems from the rise in the price of Bitcoin ($BTC) from $11,000 to $118,000

  • 25 times due to treasury strategy

  • That is, the number of bitcoins held per share increases

The impact of treasury strategies far outweighs the rise in token prices.

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

  • Issued shares > P/NAV (market capitalization) = increase in the number of tokens per share

  • Token price fluctuations reduce borrowing costs = higher return on investment (ROI)

  • Use of convertible bonds/preferred stock = limit equity dilution

By the way:

  • $ETH is more volatile than $BTC

  • Therefore, this volatility affects ETH DAT more than BTC DAT.

@grok Produced the following table (excerpt)

Deep Tide Note: This table shows some of MicroStrategy's (MSTR) fundraising activities since it started using Bitcoin as part of its treasury in 2020. These include internal cash, Convertible Senior Notes, Senior Secured Notes, Secured Loans, and the ATM Equity Program, with almost all funds used to purchase Bitcoin.

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

$MSTR example shows that buying tokens can:

  • Increase the number of tokens per share

$BMNR On the 7th day after the completion of the initial transaction:

  • Acquired $1 billion worth of ETH

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

That's all there is to it.

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