Crypto Treasuries Face Volatility as Premiums to NAV Narrow, NYDIG Warns

Crypto Treasuries Encounter Increasing Pressure Amid Premium Compression

Digital asset treasury (DAT) firms are experiencing a notable decline in the premiums of their stock prices relative to their net asset values (NAV), a trend expected to intensify unless proactive measures are implemented, according to the New York Digital Investment Group (NYDIG).

Greg Cipolaro, NYDIG’s global head of research, highlighted that major Bitcoin-focused firms such as Metaplanet and Strategy have seen the gap between their share prices and NAVs steadily narrow, even as Bitcoin (BTC) has surged to new highs.

“The forces behind this compression appear to be varied,” Cipolaro explained. Among the contributing factors are investor apprehension over upcoming supply unlocks, evolving corporate objectives within DAT management teams, noticeable increases in share issuance, investor profit-taking, and a lack of significant differentiation among treasury strategies.

Market Dynamics and Investor Concerns

Crypto treasury firms have attracted billions of dollars from investors over the past year, becoming a prominent trend on Wall Street. Investors commonly evaluate these companies by comparing their share prices to the value of the underlying assets, a critical indicator of financial health.

Cipolaro warned of a potentially “bumpy ride” ahead, as several firms await mergers or financing rounds that could trigger substantial sell-offs from existing shareholders. Many companies, including KindlyMD and Twenty One Capital, are trading at or below the value of their latest fundraising rounds, which may exacerbate downward pressure on share prices once shares become freely tradable.

Stock Buybacks as a Strategic Response

In response to shares trading below NAV, Cipolaro suggested that stock buyback programs represent the most straightforward means to bolster share prices by reducing supply. He advised DAT firms to allocate a portion of raised funds for buybacks to support their share valuations effectively.

Bitcoin Holdings Peak and Slowing Acquisition Pace

Bitcoin holdings among treasury companies have reached a peak of approximately 840,000 BTC this year. Strategy alone accounts for 76% of these holdings, with 637,000 BTC, while the remainder is distributed across 32 other firms, according to CryptoQuant data.

Despite an increase in the number of monthly purchases, the total volume of Bitcoin acquired by these companies slowed in August, falling below the year’s monthly average. Additionally, average purchase sizes have diminished significantly. Strategy’s average transaction size dropped from a 2025 peak of 14,000 BTC to 1,200 BTC in August. Other firms reduced their average purchase size by 86% compared to their 2025 high.

This deceleration has led to a slowdown in the growth rate of Bitcoin treasury holdings. Strategy’s monthly growth rate decreased to 5% in August from 44% at the end of 2024, while other companies’ growth fell to 8% from 163% in March.

Bitcoin itself has traded relatively flat in the past 24 hours around $111,200, down 10.5% from its mid-August peak above $124,000, as reported by CoinGecko.