Crypto treasury companies are trading for less than their holdings
The number of publicly traded crypto treasury companies has doubled since the start of the year — but many of them are failing to accomplish their goal of attracting a premium from Wall Street. According to various stock trackers, more than a dozen public companies have a market capitalization below the value of their crypto holdings. All crypto treasury companies hope to trade at a multiple-to-Net Asset Value (mNAV) greater than one. Unfortunately, several companies have fallen short of that mark. To be clear, mNAV disregards debts and encumbrances and simply divides the company’s market capitalization by the value of its holdings. In spite of this oversimplified calculation, the shorthand valuation metric is immensely popular. Certainly, an assessment of more than 160 companies would lead some rational investors to consider debts, encumbrances, or other risks to justify an mNAV of less than one. For the more bullish camp, these optimists instantly ...
