Ethereum Updates Today: Digital Asset Holdings Divided by Discount Challenges and Premium Opportunities

Bitwise Chief Investment Officer Matt Hougan notes that most crypto treasury companies are valued below their net asset value (mNAV), a pattern shaped by ongoing issues with liquidity, operational costs, and exposure to market risk. As digital asset treasuries (DATs) collectively oversee more than $130 billion in crypto assets, their valuation trends are increasingly diverging from those of conventional investment funds, presenting both new risks and opportunities for investors

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The main challenge stems from the limited liquidity of many crypto assets. Hougan explains that investors often expect a 5–10% markdown for assets that are not easily accessible, a factor that weighs heavily on DATs. This is further exacerbated by operational expenses, such as management salaries and administrative costs, which directly reduce value. For instance,

results in a 10% markdown, a frequent occurrence in this industry. On top of this, price swings and execution mistakes can further drag down valuations, as losses may be magnified by volatility or poor trades.

These challenges are reflected across the industry. companies like BitMine, Metaplanet, and SharpLink together are facing $5.8 billion in unrealized losses from their crypto portfolios, with many firms’ mNAV ratios falling below 1. BitMine’s shares trade at 0.73 times mNAV, while SharpLink and Forward Industries are at 0.82x and 0.74x, respectively. , cautions that when mNAV drops under 1, companies are under increased pressure to raise cash, often by issuing new shares that dilute current investors.

In response, some DATs have taken bold steps. FG Nexus, an

treasury operator, recently sold 10,922 ETH to finance a share repurchase, buying back 3.4 million shares at a price below its $3.94 NAV. The company, which once aimed to own 10% of the Ethereum network, has scaled back its goals after its stock plunged nearly 95% from its August peak . These actions underscore the delicate act of balancing liquidity needs with maintaining investor trust.

Despite the headwinds,

that could help DATs trade above their net asset value. These include using leverage to boost crypto-per-share, generating returns through crypto lending, and utilizing derivatives to create extra value. Larger organizations, he suggests, have the advantage of scale, allowing them to tap debt markets, pursue mergers and acquisitions, and outperform smaller competitors.

The industry is set for increased differentiation. DATs trading at a premium are expected to focus on disciplined capital deployment to grow crypto-per-share, while those at a discount may continue to struggle with inefficiency or lack of scale.

which DATs are steadily increasing their crypto-per-share figures and how broader economic trends may open up chances to buy undervalued assets.

As the sector evolves, DATs’ ability to address these obstacles will be key to their survival. For now, the persistent discount to mNAV highlights both the inherent risks and the potential upside of investing in digital asset treasuries.