DWF Ventures: Only 4 of Top 20 Crypto Treasury Stocks Trade Above Crypto Holdings

A report from DWF Ventures found that only four of the 20 largest crypto treasury stocks trade above the value of their crypto holdings.

The analysis also showed that most top digital asset treasuries (DATs) have underperformed their underlying tokens since inception. These DATs are listed companies that buy and hold cryptocurrencies.

Why Crypto Treasury Stocks Lost Their Shine

The market-value-to-net-asset-value (mNAV) ratio compares a DAT's market capitalization with the value of its crypto assets. A ratio below 1 means the shares trade at a discount to those holdings.

In its September 24 report, DWF ranked Bit Digital at the top with 1.49x, using data as of September 21. The next highest were Strive (1.21x), Hyperliquid Strategies (1.17x) and BitMine (1.02x).

Strategy, the biggest corporate holder of Bitcoin (BTC), sits at 0.97x on DWF's count. SovereignAI is last at 0.22x. DWF noted that debt and preferred stock are excluded from these mNAV figures.

The report blames these discounts on a shrinking access premium. Institutions once paid more for DAT shares because regulated funds had trouble owning crypto directly.

That barrier has since disappeared, with institutions now able to use exchange-traded funds (ETFs), regulated private funds and custody services.

“However, as SEC proposed to quicken the listing process by over 75% for ETFs, the access premium has reduced significantly over the years. Institutional buyers have a lot more assets to choose from for ETFs, regulated private funds and custodian infrastructure allowing for direct deployment – which was not possible before,” the report read.

A Catch-Up Trade With a 3-Month Shelf Life

Since inception, DWF concluded that investors were generally better off just holding the token. The few DATs that outperformed their assets did so by margins too small to justify the risk.

However, in shorter windows the picture is different: since July, shares have outpaced tokens by 15% to 40%. Over that time, mNAV ratios rose from lows of 0.5x–0.8x to between 0.7x and 1.0x.

Hyperliquid Strategies (PURR), which holds Hyperliquid (HYPE), beat HYPE by 31%. Cypherpunk Technologies (CYPH), the treasury for Zcash (ZEC), outperformed its token by 38%. Since tokens per share barely moved, DWF attributed the rally to sentiment. Beyond 3 months, however, the token remained the better bet.

Going forward, DWF expects that boards and capital structures will become increasingly important in how DATs are valued. It pointed to Strategy, which prioritizes debt holders and has ongoing preferred dividend obligations.

Those payments could force Bitcoin sales that dilute shareholders, the report warned. If confidence breaks, DWF said, Strategy's mNAV could enter a downward spiral.