Digital Asset Treasuries Are Collapsing: Lost Confidence Triggers Market Sell-Off

The financial health of Digital Asset Treasury (DAT) firms, previously a major crypto buying source, is rapidly deteriorating, as indicated by Artemis data showing their Market Net Asset Value (mNAV) ratio collapsing toward 1.0 from highs above 25.

The mNAV ratio, which measures market capitalization against the net asset value of holdings, shows that the premium investors once paid for DAT stocks has nearly vanished, with BTC and ETH DATs at 1.1. This loss of confidence has led to significant liquidation, with total BTC holdings by DAT firms dropping from a peak of $92.6 billion to $78.1 billion.

Experts like Omid Malekan argue that DATs acted as a mass extraction and exit event, contributing to the crypto price slump due to high establishment costs. Matt Hougan of Bitwise Invest advises that DATs must offer more than just coin accumulation to be viable, suggesting investors should prefer ETFs if the DAT is not performing difficult tasks.

(Source：BeInCrypto)