Crypto treasuries set for ‘bumpy ride’ as premiums narrow: NYDIG
The premiums of digital asset treasury (DAT) firms are falling and it’s likely to worsen in the near future unless they take action, says New York Digital Investment Group (NYDIG).
NYDIG global head of research Greg Cipolaro said on Friday that the gap between stock price and net asset values (NAV) of major Bitcoin
BTC$111,058buying firms such as Metaplanet and Strategy “continue to compress” even as BTC has reached new highs.
“The forces behind this compression appear to be varied,” Cipolaro added. “Investor anxiety over forthcoming supply unlocks, changing corporate objectives from DAT management teams, tangible increases in share issuance, investor profit-taking, and limited differentiation across treasury strategies.”
Strategy’s premium to NAV (blue) has narrowed over the past few weeks as Bitcoin (orange) has risen. Source: NYDIG
Crypto treasury firms have become the latest fad on Wall Street and have garnered billions of dollars in the last year. Investors will typically compare share prices to the value of the assets they hold as a metric to assess their health.
Share buyback programs needed to boost health
Cipolaro said a “bumpy ride may be ahead” for crypto treasury firms as many are awaiting mergers or financing deals to go public, which could see a “substantial wave of selling” from existing shareholders.
He added many treasury companies , including KindlyMD and Twenty One Capital, are trading at or below the value of recent fundraises, and a share price drop “might exacerbate selling once shares are freely tradeable.”
If shares in a treasury company traded below its NAV, “the most straightforward course of action would be stock buybacks,” Cipolaro said, which aim to increase share prices by reducing supply.
“If we were to give one piece of advice to DATs, it’s to save some of the funds raised aside to support shares via buybacks.”
Company Bitcoin holdings hit peak, but buying slows
The holdings of Bitcoin buying companies have reached a peak high this year, at 840,000 BTC, with Strategy holding 76%, or 637,000, of the total, with the rest spread across 32 other firms, according to a CryptoQuant report on Friday.
The number of purchases per month is also up, but CryptoQuant said the total amount of Bitcoin bought by the companies slowed in August to below this year’s monthly average, and the firms are scooping up less Bitcoin per transaction.
Monthly Bitcoin purchases by Strategy (orange) and other treasury companies (blue). Source: CryptoQuant
For example, Strategy’s average purchase size fell to 1,200 BTC in August compared to its 2025 peak of 14,000 BTC, while other companies purchased 86% less Bitcoin compared to their 2025 high of 2,400 BTC in March.
That’s led to a sudden slowdown in the growth of Bitcoin treasury holdings, with Strategy’s monthly growth rate dropping to 5% last month, compared to 44% at the end of 2024, while other companies saw an 8% growth in August compared to 163% in March.
Bitcoin has traded flat in the last 24 hours at around $111,200, and has fallen 10.5% from its over $124,000 peak in mid-August, according to CoinGecko.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Australia Unemployment Rate set to remain at a five-year high of 4.6% in September
Blackstone's AirTrunk Postpones $1.5 Billion REIT IPO: Yield Raised to 6% but No Takers, AI Infrastructure Financing Faces 5.2% US Treasury Yield
AirTrunk, a data center operator under Blackstone, has decided to postpone the listing of its $1.5 billion Singapore Real Estate Investment Trust (REIT) to the first or second quarter of 2027. Rising U.S. Treasury yields and increased market volatility have made investors more cautious; even raising the yield from 5.5% to around 6% has not boosted demand. High capital costs are becoming a major constraint on the expansion of AI infrastructure.
CoreWeave Faces Dual Shock in Stocks and Bonds! Share Price Plummets 15%, Bonds in Trouble, Musk Exclaims "Scary"
Analysts point out that the company borrows at an interest rate of about 9%, but its investment returns are less than 5%. With total debt and lease obligations amounting to $52 billion, there is a risk that its equity value could go to zero. Rising inflation has pushed up long-term U.S. Treasury yields, leading to systemic doubts about the financing logic of capital-intensive AI companies. Prediction platforms now estimate the company's probability of bankruptcy before 2027 at 17%.
Federal Reserve Beige Book Warns of "Fierce" Oil Prices: Half of Districts Face Strong or Intensifying Price Pressures, Businesses Confront Price Increases and Profit Squeeze
The Beige Book shows that all 12 Federal Reserve districts reported the impact of rising oil prices. Businesses generally indicated that high diesel prices and fuel surcharges are passing additional costs down the entire supply chain. Since the previous Beige Book report just over a month ago, the U.S. economy has experienced moderate growth, with manufacturing serving as the main support. The labor market continues to see low hiring and low layoffs, and firms in nearly half the districts reported that AI investment is impacting employment.
Crypto prices
More
