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2 hours ago
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Insider trading isn’t rare in crypto.
It’s the model.
Digital Asset Treasury Companies (DATCs) are created in secret, funded via pipe deals, and pumped before public launch.
I will explain how DATs work. 👇
📍How are DATs created?
This isn’t a typical IPO.
There are 3 core playbooks:
1. Reverse Merger - Buy the Shell, Become the Host
First, find a dying public company.
No revenue.
Trading on fumes.
Few shareholders.
Then?
Cut a deal.
Take control.
Merge in.
You become the surviving entity - and you get the ticker.
This is what TRON did with SRM Entertainment.
This is how Janover became DeFi Development Corp.
Rebrand.
Clean the books.
Replace the board.
Now you’re a public company - with zero scrutiny and infinite narrative.
2. SPAC
Can’t find a dead shell?
No problem. Buy a SPAC.
It’s already public, already clean.
Merge in, get listing, and raise capital on day one.
You’ll still need an SEC review - but the shortcut is clear.
3. Silent Takeover - Skip the Merger, Grab Control
Want speed?
Buy 51% of a microcap - directly from insiders or on open markets.
No proxy vote.
No merger filings.
Just a board shakeup and a brand pivot.
You now control a Nasdaq company.
This all is happening at scale.
Over 30 companies in 2025 alone have followed one of these 3 models.
More are lining up - because the infrastructure is already in place.
You don’t need an IPO.
You need legal control of a broken ticker and a crypto treasury vision.
👉Join my Substack as paid subscribers - free is a start, the real edge is in paid newsletter.
📍How DATs Funded?
These aren’t tech startups raising from VCs.
They’re capital markets machines.
Built to turn stock price hype into crypto.
Once the public shell is secured, insiders inject capital through three high-speed mechanisms:
1. PIPEs - Private Deals, Public Outcomes
Institutional investors buy equity at a discount, behind closed doors.
Fast. Quiet. Massive.
TRON raised $100M this way.
Strive Asset Management? $750M.
Forward Industries pulled in $1.65B in Solana plays alone.
These are not seed rounds.
They’re weapons to flood treasuries with liquid capital — overnight.
2. Convertible Notes - Delayed Dilution, Massive Ammo
Don’t want dilution today?
Borrow now, convert later - if shares go up.
GameStop raised $2.7B this way to buy Bitcoin.
Nano Labs prepped $500M for BNB.
It’s debt disguised as capital - if stock rips, so do the conversions.
3. ATM Programs
Once the stock trades above NAV, they go full throttle.
Sell shares on the open market.
Buy crypto immediately.
Repeat.
Forward’s ATM program? $4 billion.
Metaplanet, Trump Media, GameStop - all running this playbook.
It’s a reflexive loop: raise -> buy -> hype -> raise again.
This is financial engineering at retail’s expense.
Insiders are the ones wiring the money in, then dumping out.
Now that you’ve seen how they’re funded…
You’ll understand why early leaks matter.
Why every “treasury” announcement should come with a timestamped wallet and SEC filing - not just a tweet.
Where it leaks:
- Legal firms drafting docs.
- Exchanges prepping listings.
- Advisors whispering to funds.
Worst of all: ROADSHOWS.
Roadshow is where the pump begins.
SharpLink stock was flat - until day 2 of its roadshow.
It spiked 1,000% before the deal closed.
That’s not retail.
That’s privileged information leaking - exactly when insiders run the play.
This is the new digital IPO.
Except without disclosures, without lockups, and without accountability.
Insiders will always find a way to sell you what they got for free.
Founders, traders, investors
If you’re not asking who minted it, who funded it, and who front-ran it.
You’re the exit liquidity.
Agree? Disagree? 👇
👉 If you find this article useful - paid subscribers get full deal term analysis whenever new issuances drop.
