Ethereum News Today: Digital Asset Treasuries Split Between Discount Struggles and Premium Prospects

Most crypto treasury firms trade at a discount to their net asset value (mNAV), a trend driven by structural challenges in liquidity, operational expenses, and market risk, according to Bitwise Chief Investment Officer Matt Hougan. As digital asset treasuries (DATs) manage over $130 billion in crypto holdings, their valuation dynamics increasingly diverge from traditional investment vehicles, creating opportunities and risks for investors according to Bitwise analysis.

The core issue lies in the inherent illiquidity of crypto assets. Hougan notes that investors typically demand a 5–10% discount for assets that cannot be quickly accessed, a factor that disproportionately affects DATs. Compounding this are operational costs, including executive compensation and overhead, which directly erode value. For example, a $100 of Bitcoin minus $10 of expenses per share equates to a 10% discount, a common scenario in the sector. Additionally, market volatility and execution risks further depress valuations, as errors or adverse price movements can accelerate losses.

These pressures are evident in the broader market. Decrypt reports that DATs such as BitMine, Metaplanet, and SharpLink collectively face $5.8 billion in unrealized losses on their crypto holdings, with mNAV ratios below 1 for many firms. BitMine trades at 0.73x mNAV, while SharpLink and Forward Industries hover at 0.82x and 0.74x, respectively. Armando Aguilar, head of capital formation at TeraHash, warns that as mNAV falls below 1, companies face heightened pressure to secure liquidity, often through equity offerings that dilute existing shareholders.

The situation has prompted some DATs to take aggressive measures. FG Nexus, an Ethereum treasury firm, recently sold 10,922 ETH to fund a share buyback program, repurchasing 3.4 million shares at a discount to its NAV of $3.94. The firm, which previously aimed to acquire a 10% stake in the Ethereum network, has scaled back its ambitions after its stock plummeted nearly 95% from its August high according to market analysis. Such moves highlight the delicate balance between maintaining liquidity and preserving investor confidence.

Despite these challenges, Hougan identifies strategies for DATs to trade at a premium. These include leveraging debt to amplify crypto-per-share holdings, earning yield through crypto lending, and deploying derivatives to generate additional assets. Larger firms, he argues, benefit from economies of scale, enabling them to access debt markets, execute M&A deals, and outperform smaller peers.

The sector is poised for greater differentiation. Premium DATs are likely to focus on growing crypto-per-share through disciplined capital allocation, while discount firms may struggle with inefficiencies or limited scale. Investors are advised to monitor which DATs consistently increase their crypto-per-share metrics and how macroeconomic shifts create opportunities to acquire undervalued assets.

As the market matures, the ability of DATs to navigate these challenges will determine their long-term viability. For now, the discount to mNAV remains a persistent feature, reflecting both the risks and potential rewards of investing in digital asset treasuries.