According to a new report from DWF Ventures, the crypto treasury model has largely lost its early advantage, with most digital asset treasury (DAT) companies no longer commanding the premiums that previously allowed them to raise capital and accumulate more crypto without diluting existing shareholders. The analysis found that only four of the twenty largest DATs by assets under management—Bit Digital, Strive, Hyperliquid Strategies, and BitMine—trade above an mNAV of one, meaning their market value exceeds the value of their crypto holdings. This widespread discount suggests investors are no longer willing to pay a premium for crypto exposure through publicly traded companies.
Since Michael Saylor’s Strategy pioneered the Bitcoin treasury model in 2020, most DAT stocks have underperformed simply holding the underlying crypto asset, according to DWF. Even among the few DAT stocks that have outperformed, the advantage over direct cryptocurrency ownership has generally been small. The report notes that investor premiums peaked when the strategy was novel, such as during Strategy’s late 2024 rally, but have since eroded amid broader market volatility. Bitcoin recently fell from a record high of more than $126,000 last October to below $60,000 before recovering to around $86,000. In a related development, Sequans Communications disclosed it sold its remaining 314 BTC, completing an exit from its Bitcoin treasury strategy initiated in May.
The erosion of equity premiums fundamentally undermines the core financing mechanism of the digital asset treasury model. As noted by Galaxy Digital, this strategy critically depends on a persistent premium to net asset value to allow companies to issue shares and purchase additional crypto without diluting existing holders. When shares trade at a discount, raising equity becomes dilutive, breaking the flywheel effect that enabled rapid accumulation during the bull market. The fact that sixteen of the top twenty firms now trade below NAV indicates that the market has repriced these vehicles not as superior access points to crypto, but as leveraged entities carrying operational and structural risks without delivering proportional alpha.
This shift signals a potential consolidation phase within the sector, echoing warnings from Standard Chartered regarding an "mNAV collapse." Investors are increasingly recognizing that the convenience of public market exposure does not justify paying above the intrinsic value of the underlying assets, especially when direct spot ETFs or exchange holdings offer cleaner exposure. For remaining DATs, the challenge is no longer just acquiring capital, but demonstrating a strategic edge beyond simple balance sheet expansion. Without the ability to accretively issue stock, these firms may face pressure to unwind positions, merge, or pivot to yield-generating strategies to justify their valuations, marking a transition from speculative growth to defensive survival.
