Crypto Treasury Model Loses Edge as Stock Premiums Fade: DWF Report
The crypto treasury model that enabled digital asset treasury (DAT) companies to raise capital and accumulate digital assets without diluting shareholders has largely lost its early advantage, according to a new report from DWF Ventures. Only four of the twenty largest DAT firms by assets under management currently trade above the market net asset value (mNAV) of 1, indicating that investors are less inclined to pay premiums for crypto exposure via publicly traded entities.
Summary of DWF Ventures Report
The report published by DWF Ventures on Thursday highlights that only four companies — Bit Digital, Strive, Hyperliquid Strategies, and BitMine — currently trade above an mNAV of 1, meaning their market capitalization exceeds the value of their cryptocurrency holdings.
Most digital asset treasuries now trade at a discount, reflecting decreased investor willingness to pay premiums for crypto exposure via publicly traded companies.
Since the inception of the crypto treasury model by Michael Saylor’s Strategy in 2020, most DAT stocks have underperformed compared to simply holding the underlying crypto asset. Even those that have performed well demonstrated only slight advantages over direct cryptocurrency holdings.
Sequans Communications Case and Model Shifts
An example of this trend shift is seen in Sequans Communications, a French semiconductor firm that adopted a Bitcoin treasury strategy last year but began exiting in May by redeeming convertible debt and selling its remaining 314 BTC, now holding no cryptocurrency on its balance sheet.
DWF notes that premiums peaked when the treasury model was new and investor demand was strong; for instance, Strategy’s mNAV peaked in late 2024 during Bitcoin’s rally, when leveraged BTC exposure was highly sought after.
Early Warnings on DAT Model Risks
Standard Chartered raised concerns in September 2025—even amid a bitcoin and crypto boom—that a collapse in mNAV could trigger widespread consolidation in digital asset treasury firms.
Galaxy Digital also issued a similar warning last year, emphasizing that the DAT model critically depends on a persistent equity premium to NAV, as its absence can dilute shareholders and undermine the financing mechanism.
Galaxy research analyst Will Owens stressed that if premiums collapse or turn into discounts, the treasury model starts to break down.
Impact of Crypto Market Volatility on the Model
The model has struggled significantly throughout 2025–2026 amid Bitcoin’s volatility, falling from an all-time high of over $126,000 in October 2025 to below $60,000, then recovering to around $86,000.
Such price fluctuations diminish the sustainability of financing models based on equity premiums over digital asset values, reducing their attractiveness to investors.
Why it matters
The decline in stock premiums and emergence of discounts among digital asset treasury companies signals a shift in investor sentiment away from a model that initially enabled capital raising without shareholder dilution. This trend indicates reduced ease in scaling crypto portfolios through public entities and highlights risks associated with crypto market volatility. Analyst warnings and market actions like Sequans’ Bitcoin exit underscore the need to reconsider and adapt the crypto treasury model under current conditions, which significantly impacts investment strategies and the broader crypto ecosystem development.
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