As digital asset treasury mNAVs collapse, only the strong will survive — Standard Chartered

Standard Chartered warns of risks as Bitcoin, Ethereum and Solana treasury companies face valuation crunch.

The boom in digital asset treasury (DAT) companies — fueled by the success of Strategy’s Bitcoin-buying — has shone a spotlight on cryptocurrencies such as Bitcoin, Ether and Solana. However, that spotlight has dimmed in recent weeks as the market net asset values (mNAVs) of many DATs collapsed, exposing smaller firms to growing risks, Standard Chartered warned Monday.

In the world of DATs, mNAV measures the ratio of a company’s enterprise value to the value of its cryptocurrency holdings. An mNAV above 1 allows a firm to issue new shares and keep accumulating digital assets. Below that threshold, it becomes far harder — and less prudent — to expand holdings.

Standard Chartered noted that several high-profile DATs have recently slipped below that critical level, effectively shutting off their ability to keep buying. 

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