Forget Everything You Know About Treasury Plays and MSTR — How Dynamite Blockchain Is Engineering Value

Recently, while digesting the latest correction amongst cryptocurrency companies, I went on the hunt for some lesser-known gems that would be best positioned for a bounce-back. That’s when this press release caught my attention.

It comes courtesy of Dynamite Blockchain [OTC: CRYBF | FRA: EVB | CSE: KAS], and it announces a few interesting things. Notably, “A seven-fold quarterly increase in total assets to $14.31 million,” along with a flurry of recent utility token acquisitions.

What makes this interesting is simple. If you strip out all the intricacies and summarize its business in five words or less, Dynamite is fundamentally a Digital Asset Treasury (DAT) play. A lot like Michael Saylor’s Strategy [NASDAQ: MSTR] (formerly MicroStrategy), but with Utility Tokens instead of Bitcoin [$BTC].

And that’s why it caught my attention. Specifically, because it raises the following question: Why is Dynamite going all in on a treasury play right as the hype seems to be fading?

After all, haven’t the days of massive Net Asset Value multiples (mNAV) already come to an end?

Or is Dynamite Blockchain onto something I’ve somehow missed?

Turns out, it’s the latter — Dynamite might just be onto something that we’ve all missed.

And its secret lies in its choice to place utility tokens at the core of a genuine strategy.

Leveraged Flywheels Only Go So Far: Why Dynamite Blockchain’s Play Is Smarter Than Bitcoin Treasury Plays

It’s not hard to see why Bitcoin treasury plays initially caught on. Besides removing access barriers for people/institutions who couldn’t (or wouldn’t) hold digital assets directly, treasure plays also create a sort of leveraged flywheel effect.

The effect goes a little like this:

• If the price of (let’s say) Bitcoin [$BTC] goes up, the company’s NAV follows.
• That premium to NAV gives access to cheap capital.
• That cheap capital can accumulate more BTC.
• BTC per share now goes up.
• Stock now outperforms BTC, pushing the premium up again.
• More cheap capital enters.
• More BTC accumulates.
• The cycle continues.

Simple as that, even if there were many variations on the basic play.

But, there’s a problem.

Or, to be more precise, there’s a limit to how fast the flywheel can spin — price action.

For all the financial wizardry that might go on — the equity issuances at big mNAV multiples, the convertible debt — treasury plays of the regular kind (Bitcoin, Ethereum, etc.) are little more than a leveraged bet on the underlying asset.

In other words, if the price of Bitcoin isn’t going up (or there’s no expectation that it will go up), then any justification of significant mNAV multiples disappears.

And that’s exactly why most treasury plays, like Michael Saylor’s Strategy [NASDAQ: MSTR], have seen their mNAVs fall back down to earth in recent times — the 5-10x days of Bitcoin and other cryptocurrencies are over (for now, at least…).

However, that’s not to say the days of treasury stocks are over.

Far from it.

To quote 10x Research analysts in a recent Business Insider article, “some companies in the space can succeed but only if they pivot to an operational model rooted in actual strategy, rather than simply increasing exposure to a volatile asset.”

In other words, a treasury play can still create genuine flywheel effects so long as its ‘upside’ is tied to something more than the price action of a volatile asset.

And that’s why Dynamite Blockchain’s not ‘late to the party’… they are revolutionizing the future of treasury plays by pioneering a unique business strategy.

Instead of focusing on volatile assets like Bitcoin, Dynamite has adopted a genuine strategy — a strategy that places utility tokens at the core of a broader ecosystem. And that places it miles ahead of where most treasury plays are at today.

The Blockchain Ecosystem Strategy Behind Dynamite’s Utility Token Treasury Play

Dynamite Blockchain [OTC: CRYBF | FRA: EVB | CSE: KAS] makes no secret of its utility token treasury play strategy, with most of the high-level details outlined on its recently redesigned website (Dynamite Blockchain | Cryptocurrency and Utility Token Assets).

Roughly speaking, the strategy is to create a Blockchain Ecosystem built on three key pillars.

Dynamite Blockchain Ecosystem Pilar #1: Holdings

The bare necessity for any treasury play (and where most stop) is, of course, treasury holdings. This is the first pillar in Dynamite’s Blockchain Ecosystem strategy, and it’s far from a simple “buy Bitcoin and hold” play.

What sets Dynamite apart here is its choice to focus on early-stage tokens with strong real-world utility and a tangible adoption narrative based on realistic milestones.

This gives Dynamite several key advantages over other treasury plays:

• By focusing on early-stage tokens, Dynamite can negotiate itself into significant positions. Notably, it does so through direct, off-exchange purchase agreements, which allow it to acquire substantial positions below current market value.
• By demanding strong real-world utility from its treasury holdings, Dynamite is ensuring there is built-in upside potential in its holdings. By screening tokens for realistic milestones and a case for genuine adoption, Dynamite further ensures that the upside potential is realistic and not just speculative.
• The utility focus in Dynamite’s holdings strategy opens up opportunities for further ecosystem integrations that simply aren’t possible with traditional cryptocurrency plays.
• And let’s not ignore the fact that, if some of these earlier-stage tokens take off, then their upside is significant — 50-100x (or more) price appreciation is entirely possible. The impact that would have on the Dynamite NAV is immense, further justifying a premium to NAV, especially when compared to the BTC and ETH treasury plays, where the underlying asset might rise 50% in a year from these levels.

Dynamite Blockchain Ecosystem Pilar #2: Products

Rather than passively holding tokens like most treasury plays, Dynamite actively develops proprietary technologies and platforms to extend the practical use of its holdings.

This product strategy layers additional advantages on top of those already gained through its holdings strategy. In particular:

• By building additional product integrations, Dynamite deepens its tokens’ active utility beyond that created by the original token creators. This helps further reinforce real-world utility and adoption.
• By integrating third-party tokens into its proprietary platforms and products, Dynamite is actively helping to push tokens into deeper circulation via exposure to additional audiences and deeper engagement potential.
• As products come online, additional opportunities to generate revenue become available. For instance, Dynamite’s IMME Wallet product includes multiple revenue streams, including transaction fees, subscription APIs, and ready-made compliance tooling.
• By actively building on the tokens it acquires, Dynamite becomes a preferred partner for token projects seeking real adoption. This creates a powerful negotiating position for acquiring tokens at substantial discounts.

Dynamite Blockchain Ecosystem Pilar #3: Services

Extending its product strategy one step further, Dynamite’s services pillar allows it to generate additional opportunities for token adoption and revenue generation.

These opportunities include:

• Integration, infrastructure, or API access that allows Dynamite to monetize its ecosystem directly. Compliance, authentication, transaction processing, staking, and wallet integrations are some examples of such opportunities.
• Data collection and analytics services that create both revenue opportunities, and further enhance Dynamite’s “value add” proposition when negotiating token purchase agreements with project creators.

Dynamite’s Multi-Flywheel Effect Set to Kick Into Top Gear

What’s most notable about Dynamite Blockchain’s [OTC: CRYBF | FRA: EVB | CSE: KAS] Ecosystem strategy is its creation of additional flywheels over what most treasury plays have.

This is something we touched on at several points while looking at Dynamite’s strategy, but it’s worth taking a moment to spell out the exact loops with a little more clarity.

• Enhanced token and product value: Because it’s not just a passive investor, Dynamite Blockchain is actively enhancing token value through its product and service offerings. As token value and adoption grow, so too does the value and adoption of Dynamite’s products.
• Deal leverage: By actively extending and showcasing its acquired tokens, Dynamite gains additional leverage when negotiating future deals — “We don’t just buy and hold, we bring additional value.”
• Network demand amplification: Each new product layer Dynamite introduces drives adoption across multiple holdings. This helps to reinforce token demand through network effects that compound over time.
• Third-party adoption potential: In offering its products and services to third parties, Dynamite creates frictionless opportunities for third parties to adopt tokens within its portfolio into their own products and services, further increasing token reach and utility. Then, as the reach and utility of its token holding expands, so too does the attractiveness of its products and services.
• Capital and credibility flyback: As NAV and ecosystem traction grow, Dynamite gains both financial and reputational capital. This creates opportunities for better deal terms and cheaper access to capital, thus creating genuine, two-sided alpha not available to any other investor.

How will we know whether or not this is the next BIG DAT Play?

Of course, where this goes from here on out is a question that’s yet to be answered. While Dynamite’s strategy does make perfect sense and should rightly generate decent returns, there is still some uncertainty around whether or not this will lead to exponential gains. So how we will know?

• Financials: As with anything in life, the proof is in the pudding. Fortunately, Dynamite does seem to be negotiating this hurdle with ease. The simple fact that it was able to achieve a 700% quarterly increase in total assets in Q2 is more than positive. And, based on its activity throughout Q3, we should expect to see strong ongoing growth in the next reporting season, although some volatility should be expected.
• Awareness: Dynamite must also make a concerted effort to communicate what it’s been up to if it wants to attract interest — to blow its own trumpet, and raise awareness of what it’s doing.  After a relatively quiet few quarters, the Company just announced the relaunch of its website (Dynamite Blockchain | Cryptocurrency and Utility Token Assets). They have also started to communicate their strategy, which is the news release that caught our attention. It appears as though Dynamite has clearly shifted gears on the communication front. Will they keep it up?
• Expectations: Given the drastic increase in asset value and the recently increased awareness, we expect that Dynamite should start to bear the fruits of its labor in the near future, potentially as early as the coming months. If the company can deliver continued strong NAV growth and communicate its success effectively, then I fully expect to see it start attracting a lot of very positive attention fast.

What does this mean for investors?

Based on what we’ve seen, there’s every reason to believe that Dynamite Blockchain [OTC: CRYBF | FRA: EVB | CSE: KAS] is at the foundation of what could be one of the greatest breakout DAT plays in the market.

Here’s why:

• We’ve got the fundamentals — explosive asset growth in Q2, which we predict will continue in Q3 and Q4 — separating it from its industry peers who had a rough quarter.
• We’ve got the price technicals — strong price foundation despite the recent pullback in the market, giving a perfect chart for an explosive breakout once the correction is over.
• And then there is the awareness — we haven’t even seen Dynamite start ramping up its awareness strategy. When it does, we believe the share price should better correlate with its strong quarterly performance

Now all that remains to be seen are the upcoming quarters. As such, I’ll be watching closely to see whether asset holdings continue to grow, and whether the milestones tied to its underlying tokens come to fruition.

With that said, the trajectory is already clear. The fundamentals are there, and the strategy is unfolding. The only part that’s really missing is the broader market catching on.

But that’s precisely where the opportunity lies.

Particularly given the strong rebound that’s shaping up right now.

After all, if you want to make money in this market, you have to invest where it’s going. Not where it is. And certainly not where it’s been. And, as it stands right now, the BTC and ETH treasury story has already run its course.

Now, the next wave of growth is forming — a wave built on utility, strategy, and execution.

And at its center stands one company, ready to lead it.

Dynamite Blockchain [OTC: CRYBF | FRA: EVB | CSE: KAS].

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(Featured image by Kanchanara via Unsplash)

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