- Only four of the 20 largest digital asset treasury (DAT) companies trade above a net asset value multiple of 1, signaling the model has lost its early premium advantage.
- Most DAT stocks have underperformed simply holding the underlying cryptocurrency since Michael Saylor‘s Strategy pioneered the Bitcoin treasury model in 2020.
- Sequans Communications sold its remaining 314 BTC, exiting its Bitcoin treasury strategy after redeeming convertible debt in May.
- Analysts at DWF Ventures and Galaxy Digital warn that a premium collapse could break the model’s core financing mechanism.
A new report from DWF Ventures reveals that the crypto treasury model has largely lost its early advantage, with only four of the 20 largest digital asset treasury (DAT) companies trading at a premium to their crypto holdings. The report, published Thursday, found that Bit Digital, Strive, Hyperliquid Strategies and BitMine are the exceptions among a group where shares now widely trade at a discount.
However, this discount suggests investors are no longer willing to pay the same premium for crypto exposure through publicly traded companies. Consequently, since Michael Saylor‘s Strategy pioneered the Bitcoin treasury model in 2020, most DAT stocks have underperformed simply holding the underlying cryptocurrency.
Meanwhile, Sequans Communications, a French semiconductor company that launched a Bitcoin treasury strategy last year, disclosed that it sold its remaining 314 BTC, completing an exit it began by redeeming its convertible debt in May. The report notes that the premium investors paid for DAT stocks generally peaked when the strategy was new, with Strategy seeing its mNAV peak in late 2024 during Bitcoin’s rally.
Galaxy Digital previously warned that the model “critically depends on a persistent equity premium to NAV,” allowing companies to issue shares without diluting existing shareholders. As analyst Will Owens wrote, “If the premium collapses, or worse, flips to a discount, the model begins to break.”
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
