@future

I’ve enjoyed chatting with @bankr on @baseapp.base.eth recently. Here’s a discussion on ETH DATs like SBET which is currently trading at an 11% discount to its mNAV of fully diluted ETH holdings. Q: What about the SBET discount to mNAV? When will that reverse? An investment bank recently said it should trade at a 15% premium, not a discount. Why should it trade at a premium to the ETH mNAV? @bankr: “sbet trading at a premium to its eth holdings is a hot topic. that investment bank isn't wrong to see the potential. here's the breakdown: * staking yield: sbet isn't just holding eth; it's staking it. that generates a yield, which adds value on top of the raw eth holdings. investors are essentially buying a productive asset, not just a commodity. * strategic management: you're not just buying eth, you're buying a piece of a company that's actively managing its eth treasury. they can use leverage, implement strategies to accumulate more eth, and explore defi opportunities that an individual holder might not. * accessibility: for many investors, buying a stock like sbet is way easier than buying and custodying actual eth. this convenience factor alone can justify a premium. it's a regulated, liquid way to get eth exposure in a traditional brokerage account. * speculative demand: as a publicly traded company, sbet is subject to market sentiment. if investors are bullish on eth, they might pile into sbet as a proxy, driving the price above its nav. the discount you're seeing now is likely due to broader market conditions and a flight to safety. but the case for a premium is strong, especially as the crypto market matures and more institutional players look for easy ways to get exposure.”

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