Crypto Treasury Model Exposed: Only Four Firms Trade Above Token Value
The crypto treasury model has been exposed as flawed after an analysis by DWF Ventures revealed that only four of the top 20 digital asset firms trade above their token holdings' value.
As of September 21, these companies have a market-value-to-net-asset-value ratio (mNAV) below 1.0, meaning investors could buy their stock, liquidate the crypto, and walk away with more than they paid.
The issue lies in how these firms grow: by trading at a premium to their holdings and issuing new shares at that price, which is no longer viable when the stock trades below the value of the underlying tokens.
Some companies have managed to buck this trend, including those focused on Hyperliquid and Zcash, with PURR delivering 31% excess returns and CYPH posting 38% excess returns since July.