Only 4 of Top 20 Crypto Treasury Firms Trade Above Asset Value: Report
Only four of the 20 largest crypto treasury companies traded above the value of their token reserves, DWF Ventures said.
- On Thursday, a DWF Ventures report revealed that most digital asset treasury companies now trade below the value of their crypto holdings, complicating a financing model that once allowed firms to accumulate assets without diluting shareholders.
- Treasury strategies rely on maintaining an equity premium to issue shares and purchase more cryptocurrency, but investors increasingly reject these premiums, forcing most companies to trade below net asset value.
- Only four of the 20 largest firms—Bit Digital, Strive, Hyperliquid Strategies, and BitMine—currently trade above their asset value. Bit Digital maintains its premium partly through its White Fiber cloud business, which accounted for more than 89% of its second-quarter revenue.
- Galaxy Digital analyst Will Owens warned last year that trading below net asset value makes raising equity dilutive, undermining the model's core financing mechanism. Sequans Communications, a French semiconductor company, recently exited its Bitcoin treasury strategy entirely, selling its remaining holdings.
- Market volatility has pressured the model further, with Bitcoin falling from a record high of more than $126,000 last October to below $60,000 before recovering to around $86,000, making the strategy harder to sustain.
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Cryptocurrency News | Cryptocurrency Prices | Market CapOnly 4 of top 20 crypto treasury firms trade above asset value: report
Digital asset treasury companies have mostly lagged the cryptocurrencies they hold, with only four of the 20 largest trading above the value of their token reserves, according to a new analysis by DWF Ventures. DWF Ventures compared the share prices…
Crypto Breaking News
BITRSSDWF: Crypto Treasury Model Weakens as Stock Premiums Normalize
Digital asset treasury (DAT) companies—publicly traded firms that hold cryptocurrencies and finance additional crypto buys by trading at a premium to their holdings—are losing the advantage that once made the model attractive to investors, according to a report from DWF Ventures released this week. DWF found that among the 20 largest DATs by assets under [...]
An analysis by DWF Ventures shows that only four of the 20 largest crypto treasury companies are listed above the value of their reserves. The data shows why shares do not necessarily replicate the performance of BTC, ETH or other tokens, and how financing, operating revenue and management decisions are redefining the valuation of the sector.
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