A recent report by DWF Ventures indicates that the crypto treasury model is losing its effectiveness as most digital asset treasury (DAT) companies now trade below the value of their crypto holdings. This trend undermines a financing strategy that previously allowed firms to expand their balance sheets without diluting shareholder equity.
Out of the 20 largest DATs by assets under management, only four—Bit Digital, Strive, Hyperliquid Strategies, and BitMine—currently trade above their market net asset value (mNAV) of 1. The report highlights a growing reluctance among investors to pay premiums for crypto exposure through publicly traded companies.
Since the introduction of the Bitcoin treasury model by Michael Saylor in 2020, many DAT stocks have underperformed compared to simply holding the underlying cryptocurrency. The report also notes that Sequans Communications has exited its Bitcoin treasury strategy, selling its remaining 314 BTC.
DWF's findings echo previous warnings from firms like Standard Chartered and Galaxy Digital, which cautioned that a collapse in mNAV could lead to significant consolidation within the sector. The sustainability of the DAT model is increasingly in question as market conditions shift.