{"id":89502,"date":"2025-10-02T12:57:01","date_gmt":"2025-10-02T09:57:01","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=89502"},"modified":"2025-10-02T13:01:01","modified_gmt":"2025-10-02T10:01:01","slug":"bit-digital-ceo-discusses-survival-strategies-for-dat-firms-in-bear-markets","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/bit-digital-ceo-discusses-survival-strategies-for-dat-firms-in-bear-markets\/","title":{"rendered":"Bit Digital CEO Discusses Survival Strategies for DAT Firms in Bear Markets"},"content":{"rendered":"

DAT<\/span> companies should steer clear of asset-backed debt to endure potential bear markets, according to Bit Digital CEO Sam Tabar, speaking with The Block<\/a> at the Token2049 conference in Singapore.<\/p>\n

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Focus on Ethereum and Caution with Debt<\/h2>\n

Tabar emphasized the approach to debt financing. He noted that leveraging borrowed funds allows companies to increase their cryptocurrency per share while maintaining the same number of shares.<\/p>\n

However, the choice of debt type is crucial. The expert stressed that an incorrect leverage level could easily destroy a business.<\/p>\n

The Bit Digital CEO pointed out that many Ethereum treasuries use secured debt, which becomes “extremely risky” during market corrections.<\/p>\n

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“When asset values plummet, creditors start demanding their investments back, targeting the company’s funds,” he explained.<\/p>\n<\/blockquote>\n

To avoid such risks, Bit Digital opts for unsecured debt. On September 30, the company announced<\/a> the issuance of $135 million in convertible bonds.<\/p>\n

Preparing for a “Crypto Winter”<\/h2>\n

Besides its cryptocurrency focus, Bit Digital is actively developing its artificial intelligence division, WhiteFiber.<\/p>\n

In August, the organization conducted an IPO<\/span> and raised $159.4 million, according to Bloomberg. Bit Digital retains 71% of the subsidiary’s shares, which now operates as a separate public company.<\/p>\n

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“For us, the ideal position is a combination of investments in Ethereum and artificial intelligence,” Tabar noted.<\/p>\n<\/blockquote>\n

He emphasized that this approach allows for risk diversification and preparation for a bear market.<\/p>\n

Trends in Crypto Treasuries<\/h2>\n

According to The Block<\/a>, the growth of treasury companies reflects institutional interest in crypto assets: public organizations are expanding their “digital reserves” beyond Bitcoin (4.1% of the market) to Ethereum (2.9%) and Solana (2.6%).\u00a0<\/p>\n

However, altcoin-focused DATs may lead to premature token monetization by insiders, disrupting the vesting<\/span> process.\u00a0<\/p>\n

U.S. regulators are already investigating<\/a> suspicious trades before cryptocurrency purchase announcements. Notably, the SEC suspended<\/a> trading in shares of Hong Kong’s QMMM Holdings, which planned to acquire Bitcoin, Ethereum, and Solana worth $100 million, due to suspicions of price manipulation via social media.<\/p>\n

Crypto treasury structures are forming a new trend by issuing their own stablecoins<\/a> to strengthen their ecosystems and compete with established tokens like USDC<\/a>.<\/p>\n

An example is the Sui Group Holdings structure. According to The Block<\/a>, the company plans to launch two stablecoins on the Sui<\/a> blockchain by the end of 2025: suiUSDe (yield-bearing for holders) and USDi (non-yielding) in partnership with Ethena. SUI token reserves, which after a recent increase of 20 million exceeded $300 million<\/a>, intensify competition in the stablecoin segment.<\/p>\n

Forecast and Strategy<\/h2>\n

The Bit Digital CEO expressed confidence in Ethereum’s long-term potential. According to Strategic ETH Reserve<\/a>, the corporation holds 120,310 ETH valued at approximately $526.9 million.<\/p>\n