In brief
- Digital asset treasury companies face shrinking market-to-net asset value (mNAV) ratios.
- BitMine and SharpLink Gaming have seen their mNAV fall below 1.0, to 0.99 and 0.89 respectively.
- The mNAV erosion threatens DATs’ ability to raise capital through at-the-market equity programs, forcing painful share dilution and stalling capital raises, analysts said.
As Ethereum claws its way upward this week, a looming challenge threatens digital asset treasury (DAT) companies as their mNAVs have come close to 1 or slipped below it, with experts signaling potential trouble for future capital inflows.
mNAV, or market-to-net asset value, compares a company’s stock value to that of its assets. And for digital asset treasury companies, the value of their crypto treasuries can experience dramatic fluctuations.
Data from Strategic ETH Reserve shows a steep drop in mNAV for key players. BitMine and SharpLink Gaming have seen their mNAV fall below 1, to 0.99 and 0.89, respectively. BitDigital and GameSquare Holdings Inc have seen there’s slip, but hold above 1 so far. BTBT is at 1.51 and GAME has fallen to 1.13.
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Author: Akash Girimath
