Key Points
- Most digital asset treasury companies are now trading below the value of their crypto holdings, weakening the financing model that previously allowed them to raise capital and accumulate more assets.
- Only four of the 20 largest DAT companies by assets under management trade above an mNAV of 1, according to DWF Ventures.
- DWF said most DAT stocks have underperformed simply holding the underlying crypto, while falling premiums can make additional equity issuance increasingly dilutive.
The digital asset treasury model is losing one of the key advantages that fueled its rapid expansion: the ability to trade at a premium to the value of underlying crypto holdings and use that premium to raise additional capital.
According to a new report from DWF Ventures, only four of the 20 largest digital asset treasury companies by assets under management currently trade above an mNAV of 1, meaning their market capitalization exceeds the value of their crypto holdings. The four identified by the report are Bit Digital, Strive, Hyperliquid Strategies and BitMine.
The broader shift indicates that investors are increasingly valuing these companies at or below the net asset value of their digital-asset holdings.
Treasury Premiums Have Lost Their Earlier Advantage
The treasury strategy gained significant attention after Michael Saylor’s Strategy began accumulating Bitcoin in 2020.
The model relied heavily on a positive relationship between a company’s market valuation and the value of the cryptocurrency on its balance sheet. When shares traded at a premium, treasury companies could issue equity, raise capital and purchase additional crypto while potentially increasing their cryptocurrency exposure on a per-share basis.
DWF’s analysis suggests that mechanism has become substantially less effective.
Most DAT companies now trade at discounts to the value of their underlying assets. When a company’s shares trade below NAV, issuing new equity to purchase additional cryptocurrency can become dilutive rather than accretive to existing shareholders.
That changes the economics of the treasury strategy and makes continued balance-sheet expansion more difficult.
Most DAT Stocks Lag Underlying Crypto
DWF also found that most digital asset treasury stocks have underperformed simply holding the underlying cryptocurrency since the strategy became prominent.
Even among companies that generated stronger returns than their underlying assets, the report said the outperformance was generally limited.
The premium investors were willing to pay for DAT stocks tended to be strongest when the strategy was new and attracted significant market attention. Strategy’s mNAV, for example, reached its peak in late 2024 during a Bitcoin rally, when demand for leveraged exposure to BTC was particularly strong.
As the market matured, the premium became more difficult to maintain.
Sequans Exits Bitcoin Treasury Strategy
The changing economics of the model are also reflected in individual corporate decisions.
Sequans Communications, a French semiconductor company that adopted a Bitcoin treasury strategy last year, recently disclosed that it had sold its remaining 314 BTC.
The sale completed an exit that began when the company redeemed its convertible debt in May. Sequans now holds no cryptocurrency on its balance sheet.
The move illustrates how companies that previously viewed digital assets as a strategic component of their balance sheets can reconsider the model when financing conditions and market valuations change.
Warnings About mNAV Have Been Building
DWF’s assessment follows earlier warnings that the treasury model depends heavily on maintaining a premium to net asset value.
Standard Chartered highlighted the risk in September 2025, warning that a collapse in mNAV could trigger consolidation among digital asset treasury companies.
Galaxy Digital similarly argued that the model depends critically on a persistent equity premium to NAV. Its analysis noted that the premium allows companies to issue shares and use the proceeds to acquire additional crypto without necessarily undermining existing shareholders’ exposure.
When the premium disappears, that mechanism changes.
If shares trade below NAV, raising equity to purchase more cryptocurrency can dilute existing shareholders and weaken the economic rationale for continued accumulation.
Bitcoin Volatility Adds Pressure
The sustainability of the model has also been tested by Bitcoin’s price movements.
Bitcoin climbed above $126,000 last October before subsequently falling below $60,000 and later recovering toward approximately $86,000, according to the source material.
Such volatility affects both the value of treasury holdings and the market premium investors are willing to assign to companies holding those assets.
For DAT companies, the challenge is therefore not simply the direction of cryptocurrency prices. The relationship between share price, crypto holdings and the cost of raising new capital has become increasingly important.
Outlook
The fading mNAV premiums mark a significant change in the economics of the digital asset treasury model. Companies that once benefited from trading above the value of their crypto holdings now face a market where discounts to NAV are more common, potentially making equity-funded accumulation less attractive.
The future performance of the model will depend on whether treasury companies can rebuild investor premiums, generate value beyond simply holding cryptocurrency or develop financing structures that remain viable when shares trade near or below the value of their underlying assets.
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