Crypto treasury companies lose valuation premium as DWF flags weaker stock edge

Traders Union
All News
Crypto
Crypto treasury valuation drops

Highlights

Among the 20 largest digital asset treasury companies, only Bit Digital, Strive, Hyperliquid Strategies, and BitMine currently trade above an mNAV of 1.
Sequans Communications exited the Bitcoin treasury model by selling its remaining 314 BTC after redeeming convertible debt in May, now holding no cryptocurrency.
Falling premiums and Bitcoin's drop from $126,000 last October to around $86,000 threaten the treasury model's viability and ability to issue non-dilutive equity.

Report finds shrinking premium across treasury stocks

According to Cointelegraph, DWF Ventures said in a report published Thursday that the crypto treasury model has largely lost its early edge, as most digital asset treasury companies no longer trade at the premiums that supported their funding strategy.

Among the 20 largest digital asset treasury companies by assets under management, only Bit Digital, Strive, Hyperliquid Strategies and BitMine trade above an mNAV of 1, meaning their market capitalization exceeds the value of the crypto they hold. DWF said the broader shift to discounts shows investors are becoming less willing to pay extra for crypto exposure through public equities.

The firm added that since Strategy pioneered the Bitcoin treasury model in 2020, most digital asset treasury stocks have underperformed simply holding the underlying cryptocurrency. Even the companies that have outperformed direct crypto ownership have generally delivered only a modest advantage, according to the report.

The latest findings come as Sequans Communications, a French semiconductor company that adopted a Bitcoin treasury strategy last year, says it has sold its remaining 314 BTC after starting its exit with the redemption of convertible debt in May. The company now holds no cryptocurrency on its balance sheet.

Market pressure raises risks for funding model

DWF said valuation premiums for digital asset treasury stocks typically peaked when the strategy was still novel and attracting investor attention. Strategy, for example, reached its mNAV high in late 2024 during Bitcoin's rally, when demand for leveraged BTC exposure was stronger.

Warnings about the model predate the latest market weakness. Standard Chartered raised concerns in September 2025 that an mNAV collapse could trigger broad consolidation across digital asset treasury companies, while Galaxy Digital said last year the model depends heavily on a sustained equity premium to net asset value.

That premium is central to the strategy because it lets companies issue shares and use the proceeds to buy more crypto without diluting existing shareholders. If shares trade below net asset value instead, new equity issuance can become dilutive and weaken the model's core financing logic.

Galaxy research analyst Will Owens wrote that if the premium collapses, or turns into a discount, the model starts to break. The pressure has become harder to manage this year, with Bitcoin falling from a record high above $126,000 last October to below $60,000 before recovering to around $86,000.

In our earlier coverage of the global bond selloff and surging sovereign yields, we explained how higher-for-longer rate expectations were pushing U.S. and other government borrowing costs to multi-decade highs. We also noted that rising debt-servicing burdens and tighter credit conditions can amplify funding stress, especially when markets reprice risk and demand higher yields.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.