According to TechFlame, according to The Block, Bit Digital CEO Sam Tabar said during the Token 2049 summit in Singapore that digital asset treasury (DAT) companies should consider using unsecured debt financing instead of secured debt to better cope with a potential bear market. “The most efficient way to increase your crypto holdings per share is debt financing,” Tabar, who is also the CEO of Bit Digital and AI company WhiteFiber, said in an exclusive interview with The Block on Wednesday. “It is good to increase your crypto holdings without changing your share capital, but choosing the type of financing is critical — the wrong leverage can destroy a business.” Tabar warned that a number of companies that built up Ethereum treasury have issued secured debt, bluntly saying “this type of debt is extremely risky.” He explained, “When Ethereum assets depreciate, creditors will pursue corporate and collateral assets. Debt instruments are good, but they must maintain their unsecured nature.” This statement comes on the heels of Bit Digital's announcement on Tuesday to expand the issuance of convertible bonds to $135 million. The senior unsecured bond has an annual interest rate of 4%, and interest is paid every six months.