Digital asset treasuries (DATs), which are publicly listed companies holding cryptocurrencies on their balance sheets, have faced significant challenges recently as their market net asset values (mNAVs) dropped below 1, according to a recent report by Geoff Kendrick from Standard Chartered.
Looking into the future, Kendrick suggests that ether (ETH) DATs may possess greater resilience due to factors such as staking yields, clearer regulatory frameworks, and potential for expansion.
The mNAV ratio plays a vital role in this context. A decline in this ratio diminishes these firms’ motivation—and sometimes their capacity—to continue purchasing cryptocurrencies. This situation poses a risk to an essential source of demand for bitcoin $114,865.33, ether, and solana.
Kendrick points out that the next stage for DATs will involve differentiation among them. The most successful entities will be those capable of securing funding at minimal costs while achieving scale that attracts liquidity and investor interest—most importantly, generating staking yields. This last aspect gives an advantage to ether and solana treasuries compared to bitcoin treasuries which do not offer yield opportunities.
Market saturation is also influencing dynamics within this sector. The success of Strategy’s BTC treasury has led to numerous imitators—nearly 90 by the latest count—who collectively hold over 150,000 BTC; a sixfold increase within this year alone.
If mNAVs remain below 1, Standard Chartered anticipates consolidation among these firms. For bitcoin treasuries specifically, it could result in companies like Saylor’s Strategy acquiring competitors instead of purchasing new bitcoins from the open market—a shift towards coin rotation rather than fresh demand creation.
On the other hand, ether treasuries appear more favorably positioned as they have been actively accumulating assets since June with approximately 3.1% of ETH’s circulating supply acquired during that time frame. The largest player in this space is Bitmine (BMNR), which is well-equipped to expand its holdings beyond its current stack of 2 million ETH according to the report findings.
This situation holds significance for cryptocurrency markets overall since DAT purchases have been crucial drivers behind bitcoin and ether price movements anticipated for 2025. However, with BTC treasuries under pressure for consolidation and solana treasuries still relatively small-scale operations at present timeframes; Standard Chartered predicts that ETH will likely emerge as the primary beneficiary moving forward.
Read more: Strategy’s S&P 500 Snub Is a Cautionary Signal for Corporate Bitcoin Treasuries: JPMorgan