Digital Asset Treasury (DAT) education series - ATMs Let's talk about "at the market" (ATM) offerings that are commonly employed by DATs An ATM facility is a flexible way for a public company to raise money by selling new shares of its stock directly into the market, over time, at the current market price The crypto analog is the foundation treasury dripping tokens into the market The difference here is that the company is dripping its stock into the market to raise $ to buy more of the crypto treasury asset The way it works is the company partners with a sales agent to sell the shares and can choose when and how much to sell, based on any parameters disclosed in the filing This can be a good thing if the company is selling when the stock price is at a high mNAV as the resulting purchase of the crypto asset would be accretive on a "tokens per share" basis Let's look at an example: Sharplink $SBET established an ATM on May 30 for $1 billion, meaning it can sell up to $1B worth of SBET into the open market, over a period of 3 years That's a LOT of shares! There are some restrictions w.r.t. how the sales can be performed but generally they can sell as little or as much as they want under this type of facility From Jul 14 to 20 they sold almost $100m through this ATM, so they're working through it pretty fast What this does is puts somewhat of a cap on the mNAV because the company would obviously want to sell when it gets high to add more crypto to the treasury and keep the fly wheel going So net-net, it's a good thing, it means they can sell at the market (less sales agent fees which are typically 2-3%) and raise efficient capital to grow the treasury It also makes things a bit tricky as an analyst trying to monitor mNAV as the company doesn't need to disclose every ATM transaction Typically they provide updates on quarterly earnings or any material events, but otherwise unless the company makes an announcement (or better yet provides real-time data on their website), it's hard to track the number of shares added through an ATM Which means it is also a bit hard to track mNAV, so the best thing you can do is understand which DATs have ATMs in place and the magnitude of them relative to their shares outstanding In the case of $SBET, it's pretty sizable so definitely one to keep on watch There are other fundraising nuances to these DATs that you need to understand if you're playing in this arena, I'll try to share more in follow up posts