The premium that once allowed publicly listed crypto-treasury firms to raise capital without diluting shareholders is rapidly disappearing, a new DWF Ventures analysis finds.

Diminishing Premiums Across the Sector

The study examined the twenty largest digital-asset treasury (DAT) companies by assets under management. Just four – Bit Digital, Strive, Hyperliquid Strategies and BitMine – currently trade above a market-adjusted net asset value (mNAV) of 1, meaning their market caps exceed the worth of the crypto they hold. The remaining sixteen are priced at a discount, indicating investors no longer value the equity exposure as highly as before.

Historical Context and Recent Performance

The model gained prominence when Michael Saylor’s Bitcoin treasury strategy launched in 2020. Early on, the equity premium enabled firms to issue shares, use the proceeds to purchase additional Bitcoin, and avoid shareholder dilution. However, even the few DAT stocks that have outperformed Bitcoin itself have done so only by a narrow margin. The peak of the premium coincided with the late-2024 Bitcoin rally, when demand for leveraged exposure was strongest.

Recent Market Pressures

Bitcoin’s price swing—from a record above $126,000 in October 2023 to under $60,000 before stabilising near $86,000—has strained the model. Standard Chartered warned of a potential “mNAV collapse” as early as September 2025, and Galaxy Digital echoed the concern, noting that the strategy relies on a persistent equity premium. When shares trade below NAV, issuing new equity becomes dilutive, undermining the core financing mechanism.

Sequans Communications’ Full Exit

French semiconductor firm Sequans Communications, which introduced a Bitcoin treasury strategy last year, has now sold its remaining 314 BTC, completing an exit that began with a convertible-debt redemption in May. The company holds no cryptocurrency on its balance sheet, underscoring the growing difficulty of sustaining the treasury approach.

Outlook for Digital-Asset Treasury Companies

Analysts suggest that continued discounting could trigger consolidation among DAT firms, as weaker players struggle to raise fresh capital. The sector may need to pivot toward alternative financing structures or focus on operational efficiencies to remain viable.

Why it matters

The erosion of equity premiums challenges the fundamental premise that publicly traded crypto-treasury entities can cheaply acquire Bitcoin on behalf of shareholders. As valuations fall below underlying asset values, the ability to fund further purchases without dilution diminishes, potentially reshaping how institutional investors gain exposure to digital assets.