The DAT trend has spread from the United States to Hong Kong

While the hype surrounding stablecoins and RWAs has yet to fade, another new wave of digital assets, "DATs," originating from the United States, is sweeping Hong Kong's financial world. In August, a reshaping of the narrative surrounding "digital assets" was intensively unfolding within Hong Kong's financial world. At the Four Seasons Hotel, the "Hong Kong Digital Asset Listed Companies Association" was established, with 49 member companies representing Hong Kong, US, and A-share listed companies. At a forum at the Grand Hyatt Hotel, New Fire Technology unveiled its "unlimited coin hoarding" plan. On the HKU campus, Binance founder Changpeng Zhao delivered a packed presentation.

These three events, held on the same day, all focused on the "crypto-equity linkage" as their core theme. The cryptocurrency sector, once outside the traditional financial landscape, is becoming a new player in Hong Kong's capital market, using "DAT" as a starting point.

01 What is DAT?

DAT, or Digital Asset Treasury, is no longer a niche concept in the cryptocurrency world. Instead, it specifically refers to the practice of listed companies purchasing tokens like Bitcoin, Ethereum, and Solana through the open market and integrating them into their core assets.

The industry generally refers to this behavior as "hoarding currency", and the resulting phenomenon of "listed companies' stock prices fluctuating with the rise and fall of currency prices" is defined as "currency-stock linkage" in the traditional financial circle.

"Over the past six months, the coin-stock linkage has been a hot topic in Hong Kong's secondary market and the cryptocurrency circle." A person in charge of a US-listed company who already holds a large amount of Bitcoin said frankly that on August 27 alone, he participated in three related activities. "From funds with state-owned enterprise backgrounds to small-ticket companies in Hong Kong stocks, everyone is asking how to enter the market."

The appeal of this model lies in its "indirect breakthrough."

At the HKU forum, Zhao Changpeng pointed out the key: "Many company finance departments and state-owned enterprises cannot buy coins directly, but by holding 'stocks of listed companies hoarding coins' through the DAT model, they can indirectly participate in the digital asset market. The size of this group is much larger than the cryptocurrency circle itself."

03 The Current State of DATs in Hong Kong

Compared to the maturity of the US and the aggressiveness of Japan, Hong Kong's DAT craze exhibits a distinct "two-pronged divide": enthusiasm on the capital side is high, while progress on the asset side (listed companies hoarding coins) is slow.

Public data shows that Boyaa Interactive, the company with the largest Bitcoin holdings in Hong Kong stocks, held only 3,670 as of the end of August. Huajian Medical, Huaxing Capital, and Yunfeng Financial have opted to invest in Ethereum and Binance Coin (BNB). Yunfeng Financial has purchased a total of 10,000 ETH, spending US$44 million. Earlier entrants like Meitu and Guofu Quantum have always maintained limited holdings. "The overall market value of Hong Kong-listed companies holding digital assets and compliance investments currently does not exceed US$2 billion," said Zhang Huachen, president of the Hong Kong Digital Asset Listed Companies Association. He revealed that most of the association's 49 member companies (38 Hong Kong-listed, 9 US-listed, and 2 A-share listed) have plans to hoard digital assets, but implementation has been slow. This cautious approach stems from the inherent limitations of Hong Kong stocks as a fundraising tool. DATs in the US stock market can quickly raise funds through PIPEs (Private Private Placement) and ATMs (ATMs): PIPEs can complete regulatory approvals within days, while ATMs act like a "stock market credit card," allowing for phased, real-time share sales upon approval (with an annual fundraising cap of one-third of the company's circulating market capitalization). Strategy, for example, raised over $4 billion and $24 billion, respectively, through these two tools in 2024. Hong Kong, on the other hand, primarily relies on private placements and placements, each requiring a complete regulatory approval process, making it far less flexible than the US stock market. "Hong Kong is suitable for assembling projects and raising capital, but ultimately, the US is the place to go," a veteran cryptocurrency investor stated, arguing that the liquidity and fundraising efficiency of US stocks are currently unmatched in Hong Kong. This is also the core reason why the B strategy fund (with a $1 billion coin hoarding capacity) backed by Changpeng Zhao's YZi Labs has temporarily chosen US stocks as its target.

04 High-barrier-to-entry game where big names gather

Although Hong Kong isn't the "home turf" of the DAT model, it has become a gathering place for cryptocurrency giants. Changpeng Zhao's YZi Labs (with over $10 billion in assets under management) is the most active investor. In addition to supporting the B Strategy Fund, it also invested $100 million to help Huaxing Capital become the "BNB Strategy for Hong Kong stocks." Its head, Ella Zhang, has been frequently in Hong Kong recently, scouting for projects. According to a source familiar with the matter, "hundreds of teams have approached us about partnerships." Huobi founder Li Lin is also not far behind. In August, his controlled Hong Kong-listed company, New Fire Technology, announced the launch of a $500 million coin hoarding program. CEO Weng Xiaoqi revealed that "investor subscriptions have exceeded $500 million." Furthermore, active cryptocurrency investors like Shen Bo and Meitu founder Cai Wensheng have also entered related projects. The entry of these major players has invisibly raised the barrier to entry for DAT projects. "Small amounts are meaningless; a minimum of $1 billion is needed to even break into the top three holdings of a specific cryptocurrency." Several asset managers planning projects in Hong Kong stated that the Bitcoin market is currently dominated by strategy firms, with newcomers often opting for Ethereum, BNB, and other alternatives. Xinhuo Technology believes that "Ethereum's premium potential is greater than Bitcoin." Bitmine, which holds 1.71 million Ethereum and has a market capitalization of $7.75 billion, has already attracted over $200 million in stock from the "Wood Sister" ARK Fund.

05 When “hoarding coins” becomes the only story

Behind the DAT craze, skepticism is also growing.

Some traditional institutional investors point out that the current market has shown a tendency towards “blind copying”: a large number of small-cap, mediocre listed companies have poured in, and their core business has become “raising funds to buy coins”, lacking actual revenue support. "Strategy's market capitalization is nearly $100 billion, but its revenue is only $150 million. Starbucks, meanwhile, has a similar market capitalization and revenue exceeding $7.5 billion." A traditional Hong Kong institutional investor bluntly stated, "Currently, their stock prices are being propped up by rising cryptocurrency prices. If Bitcoin pulls back, what will these companies do?" The lessons of Japan's Metaplanet serve as a cautionary tale: even if they transition to a DAT, if they fail to sustainably expand their holdings or experience unexpected price fluctuations, their stock prices will still experience a sharp correction. Furthermore, the inventory turnover and cash flow pressures of Hong Kong-listed companies may be overlooked. As Zhang Huachen put it, "Listed companies are the best vehicles for connecting traditional finance and digital assets, but the prerequisite is that they can't simply rely on 'hoarding' to sell stories." The "cryptocurrency-stock linkage" continues to ferment in Hong Kong's financial circles. Some see it as a new path for digital assets to integrate into traditional markets, while others worry it's a game of "pass the parcel." Regardless, the narrative reconfiguration sparked by DAT has made Hong Kong a key node connecting the Chinese and US cryptocurrency and stock markets. Whether it can ultimately evolve from a "connector" to a "leader" remains to be seen.