Hunter Horsley Predicts DAT Firms Will Acquire Many Private Crypto Startups

Bitwise CEO Hunter Horsley expects a major shift in how digital asset treasury companies (DATs) evolve. He believes most of them will eventually operate like traditional companies and grow by acquiring smaller crypto startups. His comments came in response to a long thread from the Bitwise CIO. Who explained how to correctly value DATs and why the market often misunderstands them.

Hunter Horsley said the industry is still in its “early innings.” The next stage will likely involve consolidation. Many small crypto firms remain private and he predicts larger DATs will acquire. Also, integrate these teams as they transition to operating roles.

Matt Hougan Explains Why DAT Valuations Differ

Hougan’s original thread sparked the discussion. He addressed a common problem: investors often assess DATs using shallow metrics and ignore the real forces behind their valuations. He said analysts must start with a simple question: what would the DAT be worth if it had a fixed lifespan? Hougan then walked readers through a series of scenarios. For example, if a Bitcoin DAT announced a shutdown today. It would trade exactly at the value of its bitcoin . 

But if it is planned to close in a year, investors would apply discounts for illiquidity, expenses and risk. These factors pull DAT valuations below their managed net asset value. He also explained why some DATs trade above mNAV. They can boost crypto-per-share through strategies like issuing debt, lending assets, using derivatives or acquiring crypto at a discount. However, these paths carry uncertainty and only a few companies execute them well.

Size Will Shape the Future of DATs

Hougan argued that scale will eventually define the winners. Larger DATs have more tools available. They can issue debt more easily, access deeper liquidity, pursue bigger deals and generate more income from derivatives and lending. Because of that, he expects more separation ahead. A handful of firms may earn premium valuations. While many others will likely trade at discounts.

His breakdown drew strong reactions from industry voices. Analysts, DeFi builders and market watchers praised the clarity of his model. Some argued that tokenized shares could even eliminate liquidity discounts. Others said only companies that steadily grow NAV per share will survive.

Horsley Sees Consolidation Ahead

Hunter Horsley’s reply sharpened the narrative. He agreed that DATs will differentiate over time. But he added a key twist. As they mature, Hunter Horsley believes they will evolve into true operating companies. That shift, combined with the need for scale, makes acquisitions almost inevitable. Many private crypto firms may find themselves absorbed into larger DATs as the sector grows up. The message from both Bitwise leaders is clear. DATs are still early. But the next phase will reward size, efficiency and smart execution. This is setting the stage for consolidation across the industry.