Digital asset treasury companies are seeing their market-to-net asset value (mNAV) shrink, threatening a key funding channel just as Ethereum attempts a price rebound. mNAV compares a company’s stock market value to the net value of its crypto holdings; for ETH-heavy treasuries, that number is now perilously close to — or below — 1.0.
Data from Strategic ETH Reserve shows several public treasury firms have lost their premium. BitMine and SharpLink Gaming now sit at 0.99 and 0.89 mNAV, respectively. Peers including BitDigital and GameSquare still hold modest premiums, while BTBT and GAME trade at 1.51 and 1.13.
These declines follow a broader crypto pullback — Bitcoin and Ethereum both dipped from recent highs — and reflect investor reluctance to pay extra for aggregated ETH exposure inside public companies. Firms such as BitMine and SharpLink hold large ETH reserves — roughly $8.3 billion and $3.7 billion — so even small premium erosion has big balance-sheet effects.
The practical consequence is on at-the-market (ATM) equity programs, a primary fundraising tool for digital asset treasuries. When mNAV is elevated, companies can issue stock above net asset value with limited dilution; as mNAV compresses, issuers must sell far more shares to raise the same capital, imposing painful dilution on existing holders and often stalling planned raises.
Analysts describe a feedback loop: ATM share sales increase supply and push down prices, while spot ETH ETFs let investors access ETH directly without paying a corporate premium. A stagnant ETH/BTC relationship and broader macro uncertainty add further pressure.
Investors and issuers will be watching ETH price action and macro signals closely as the quarter closes.
Risk note: compressed mNAVs magnify dilution risk and make future capital plans fragile. For DATs, a strong ETH quarter could restore premiums and reopen efficient funding; continued volatility or a market slowdown would likely pause new issuance until valuations recover.
Source: Decrypt. Read the original coverage for full details.