According to a new analysis by DWF Ventures, only four of the 20 largest digital asset treasury companies by assets under management trade at a premium to their crypto holdings. The study found that most companies have underperformed their underlying tokens since adopting treasury strategies, with most trading at a market-value-to-net-asset-value ratio (mNAV) below 1.0, meaning shares are valued at less than their crypto holdings. The analysis excludes debt and preferred stock from these calculations, requiring investors to examine these obligations separately before treating a low mNAV as a discount on everything a company owns. DWF Ventures latest report as of September 24 shows Bit Digital leading with a 1.49x mNAV, followed by Strive at 1.21x, Hyperliquid Strategies at 1.17x, and BitMine at 1.02x. Strategy, the largest corporate Bitcoin holder, sits at 0.97x, while SovereignAI ranks last at 0.22x.
Since July, some treasury stocks have significantly outperformed their tokens by 15% to 40% as their mNAV ratios improved from approximately 0.5-0.8 to 0.7-1.0. As reported by DWF Ventures, Hyperliquid Strategies (PURR), which holds Hyperliquid (HYPE), recorded a 31% return above its token during this period, while Zcash (ZEC) treasury Cypherpunk Technologies (CYPH) achieved a 38% outperformance. The analysis notes that much of these stock gains came from investors paying more for exposure to companies while crypto prices rose, rather than changes in token holdings per share. However, the underlying token remained the stronger performer across most periods longer than three months, with DWF Ventures finding that investors were mostly better off holding the token since inception, with the few DATs that beat their assets doing so by margins too thin for the risk.
The shrinking access premium that once drove demand for crypto treasury stocks is primarily attributed to the proliferation of exchange-traded funds and regulated investment vehicles. As reported by DWF Ventures, the SEC's proposed 75% reduction in ETF listing times has significantly reduced the access premium that institutions once paid for DAT shares. The report explains that institutional buyers now have access to ETFs, regulated private funds and custody services allowing direct crypto deployment, which was not possible before. This regulatory evolution has fundamentally changed the competitive landscape for digital asset treasury companies, as institutions can now access crypto exposure through multiple regulated channels without needing to invest in listed companies.
When a company's stock trades above the value of its crypto reserves, it can sell shares, use proceeds to buy tokens, and potentially increase the amount backing each existing share. However, this becomes more difficult when mNAV falls below 1.0, as selling new common shares at a discount can dilute existing investors. Companies can use convertible debt or preferred shares, but each financing method brings specific terms that common shareholders must evaluate. Recent filings show different approaches - Strategy spent $176.3 million repurchasing preferred shares and doubled its digital credit securities authorization to $2 billion, while Strive used proceeds from preferred stock to purchase 469 BTC for approximately $36.6 million. DWF Ventures warns that companies like Strategy, which ranks debt holders first and carries steady preferred dividend obligations, face potential Bitcoin sales that could dilute shareholders if confidence cracks.
The analysis argues that treasury stocks once drew a premium partly because some institutions could buy listed shares more easily than crypto directly. With more regulated funds and custody options available, DWF Ventures expects investors to place more weight on operators, financing terms, and business income when valuing one treasury company against another. This shift reflects the changing landscape of crypto asset management and the growing sophistication of institutional participation in digital asset markets. The report anticipates that boards and capital structures will increasingly shape how DATs are valued, with companies like Strategy facing particular scrutiny due to its debt obligations and preferred dividend commitments that could force Bitcoin sales during periods of market stress.
