Recently, while digesting the latest correction amongst cryptocurrency companies, I went on the hunt for some lesser-known gems that would be best positioned for a bounce-back. That’s when this press release caught my attention.
It comes courtesy of Dynamite Blockchain [OTC: CRYBF | FRA: EVB | CSE: KAS], and it announces a few interesting things. Notably, “A seven-fold quarterly increase in total assets to $14.31 million,” along with a flurry of recent utility token acquisitions.
What makes this interesting is simple. If you strip out all the intricacies and summarize its business in five words or less, Dynamite is fundamentally a Digital Asset Treasury (DAT) play. A lot like Michael Saylor’s Strategy [NASDAQ: MSTR] (formerly MicroStrategy), but with Utility Tokens instead of Bitcoin [$BTC].
And that’s why it caught my attention. Specifically, because it raises the following question: Why is Dynamite going all in on a treasury play right as the hype seems to be fading?
After all, haven’t the days of massive Net Asset Value multiples (mNAV) already come to an end?
Or is Dynamite Blockchain onto something I’ve somehow missed?
Turns out, it’s the latter — Dynamite might just be onto something that we’ve all missed.
And its secret lies in its choice to place utility tokens at the core of a genuine strategy.
It’s not hard to see why Bitcoin treasury plays initially caught on. Besides removing access barriers for people/institutions who couldn’t (or wouldn’t) hold digital assets directly, treasure plays also create a sort of leveraged flywheel effect.
The effect goes a little like this:
Simple as that, even if there were many variations on the basic play.
But, there’s a problem.
Or, to be more precise, there’s a limit to how fast the flywheel can spin — price action.
For all the financial wizardry that might go on — the equity issuances at big mNAV multiples, the convertible debt — treasury plays of the regular kind (Bitcoin, Ethereum, etc.) are little more than a leveraged bet on the underlying asset.
In other words, if the price of Bitcoin isn’t going up (or there’s no expectation that it will go up), then any justification of significant mNAV multiples disappears.
And that’s exactly why most treasury plays, like Michael Saylor’s Strategy [NASDAQ: MSTR], have seen their mNAVs fall back down to earth in recent times — the 5-10x days of Bitcoin and other cryptocurrencies are over (for now, at least…).
However, that’s not to say the days of treasury stocks are over.
Far from it.
To quote 10x Research analysts in a recent Business Insider article, “some companies in the space can succeed but only if they pivot to an operational model rooted in actual strategy, rather than simply increasing exposure to a volatile asset.”
In other words, a treasury play can still create genuine flywheel effects so long as its ‘upside’ is tied to something more than the price action of a volatile asset.
And that’s why Dynamite Blockchain’s not ‘late to the party’… they are revolutionizing the future of treasury plays by pioneering a unique business strategy.
Instead of focusing on volatile assets like Bitcoin, Dynamite has adopted a genuine strategy — a strategy that places utility tokens at the core of a broader ecosystem. And that places it miles ahead of where most treasury plays are at today.
Dynamite Blockchain [OTC: CRYBF | FRA: EVB | CSE: KAS] makes no secret of its utility token treasury play strategy, with most of the high-level details outlined on its recently redesigned website (Dynamite Blockchain | Cryptocurrency and Utility Token Assets).
Roughly speaking, the strategy is to create a Blockchain Ecosystem built on three key pillars.
The bare necessity for any treasury play (and where most stop) is, of course, treasury holdings. This is the first pillar in Dynamite’s Blockchain Ecosystem strategy, and it’s far from a simple “buy Bitcoin and hold” play.
What sets Dynamite apart here is its choice to focus on early-stage tokens with strong real-world utility and a tangible adoption narrative based on realistic milestones.
This gives Dynamite several key advantages over other treasury plays:
Rather than passively holding tokens like most treasury plays, Dynamite actively develops proprietary technologies and platforms to extend the practical use of its holdings.
This product strategy layers additional advantages on top of those already gained through its holdings strategy. In particular:
Extending its product strategy one step further, Dynamite’s services pillar allows it to generate additional opportunities for token adoption and revenue generation.
This is something we touched on at several points while looking at Dynamite’s strategy, but it’s worth taking a moment to spell out the exact loops with a little more clarity.
Of course, where this goes from here on out is a question that’s yet to be answered. While Dynamite’s strategy does make perfect sense and should rightly generate decent returns, there is still some uncertainty around whether or not this will lead to exponential gains. So how we will know?
Based on what we’ve seen, there’s every reason to believe that Dynamite Blockchain [OTC: CRYBF | FRA: EVB | CSE: KAS] is at the foundation of what could be one of the greatest breakout DAT plays in the market.
Here’s why:
Now all that remains to be seen are the upcoming quarters. As such, I’ll be watching closely to see whether asset holdings continue to grow, and whether the milestones tied to its underlying tokens come to fruition.
With that said, the trajectory is already clear. The fundamentals are there, and the strategy is unfolding. The only part that’s really missing is the broader market catching on.
But that’s precisely where the opportunity lies.
Particularly given the strong rebound that’s shaping up right now.
After all, if you want to make money in this market, you have to invest where it’s going. Not where it is. And certainly not where it’s been. And, as it stands right now, the BTC and ETH treasury story has already run its course.
Now, the next wave of growth is forming — a wave built on utility, strategy, and execution.
And at its center stands one company, ready to lead it.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
