Out of the top 20 crypto treasury stocks, only 4 currently trade above the worth of their digital asset reserves, according to research by DWF Ventures.
Furthermore, the firm discovered that the majority of top treasuries have underperformed the underlying tokens they hold since their inception. These entities are known as digital asset treasuries (DATs), which are publicly listed companies centered on purchasing and storing cryptocurrency.
Why Crypto Treasury Stocks Lost Their Shine
The market-value-to-net-asset-value (mNAV) metric evaluates a DAT by comparing its market capitalization against the total value of its crypto reserves. A reading dropping below 1 indicates that the company’s shares are trading at a discount relative to its holdings.
According to DWF’s September 24 report—which utilized data from September 21—Bit Digital leads the pack with a 1.49x multiple. Strive, Hyperliquid Strategies, and BitMine trail behind at 1.21x, 1.17x, and 1.02x, respectively.
Strategy, recognized as the largest corporate holder of Bitcoin (BTC), rests at 0.97x based on DWF’s calculations, while SovereignAI sits at the bottom with a 0.22x multiple. DWF pointed out that these specific mNAV calculations do not factor in debt or preferred stock.
The analysis attributes these widespread discounts to a diminishing access premium. Historically, institutional investors were willing to pay extra for DAT shares because heavily regulated traditional funds faced hurdles in directly owning crypto.
That landscape has shifted, as institutions now have direct pathways via exchange-traded funds (ETFs), regulated private funds, and specialized custody services.
“However, as SEC proposed to quicken the listing process by over 75% for ETFs, the access premium has reduced significantly over the years. Institutional buyers have a lot more assets to choose from for ETFs, regulated private funds and custodian infrastructure allowing for direct deployment – which was not possible before,” the report read.
A Catch-Up Trade With a 3-Month Shelf Life
DWF’s historical data indicates that investors were generally better off simply holding the raw token since inception. For the rare DATs that did outperform their underlying assets, the margins were too narrow to justify the associated risk.
Shorter timeframes tell a different story, with equities outperforming tokens by 15% to 40% since July. Throughout that period, mNAV ratios climbed upward from lows of 0.5x to 0.8x, ultimately landing between 0.7x and 1.0x.
For instance, Hyperliquid Strategies (PURR)—which maintains a reserve of Hyperliquid (HYPE)—surpassed HYPE by 31%. Similarly, Cypherpunk Technologies (CYPH), a Zcash (ZEC) treasury, outperformed its token by 38%. Because tokens per share remained virtually unchanged, DWF interpreted the surge as a sentiment-driven rally. Yet, looking past a 3-month window, holding the token remains the superior choice.
Looking ahead, DWF anticipates that corporate boards and capital structures will play an increasingly vital role in determining DAT valuations. The firm highlighted Strategy as an example, noting that it prioritizes debt holders and maintains consistent preferred dividend obligations.
The report cautioned that those ongoing payments might eventually force Bitcoin liquidations, which would dilute shareholder value. DWF concluded that once market confidence falters, Strategy’s mNAV could spiral downward.
Frequently Asked Questions
What is a digital asset treasury (DAT)?
A DAT is a listed company whose primary business model is built around buying and holding cryptocurrency.
What does mNAV measure?
Market-value-to-net-asset-value (mNAV) compares a DAT’s market capitalization to the total value of the cryptocurrency it holds. A reading below 1 means the shares trade at a discount.
Why have crypto treasury stock premiums decreased?
The access premium has shrunk because institutions can now easily invest through ETFs, regulated private funds, and direct custody infrastructure instead of relying on DAT shares.
Are stocks generally better than holding the actual crypto tokens?
According to DWF Ventures, investors were typically better off holding the token since inception, and short-term stock outperformance rarely lasted beyond a three-month window.
