Although short-term price gains have been enjoyed by crypto treasury companies, most have underperformed the underlying assets they hold.
A retracement was seen in crypto asset prices this week, but the spot market is faring better than most digital asset treasury companies. Some have lost over 90% of their value due to market saturation and investor concerns over the sustainability of their business model.
A decline of about 45% has been experienced by Strategy, the largest Bitcoin treasury company, from its all-time high of $543 per share in November. By comparison, BTC is up about 10% since its high of over $99,000 during the same month.
Successive new highs have been printed by BTC since December, reaching an all-time high of over $123,000 in August. Meanwhile, Strategy has been unable to reach a new all-time high in 2024 or recapture its previous peak during the same time period.
A decline of about 78% has been seen in shares of Metaplanet, a BTC treasury company, since the all-time high of $16 in May.
Metaplanet shares are being traded at about $3.55 at the time of this writing. Bitcoin’s price has seen a decline of about 2% since its May high of over $111,000.
Standard Chartered Links mNAV Compression to Saturation of Crypto Treasury Firms
According to analysts from global bank Standard Chartered, the collapse in the multiple on net asset value (mNAV) is being contracted due to the rise in crypto treasury companies. The mNAV is a metric tracking the enterprise value of a company in relation to its underlying assets.
It was written by Standard Chartered analysts that “market saturation is the main driver of recent mNAV compression.” A total of 140 public companies have adopted a crypto treasury strategy, according to CoinGecko.
Positions in crypto treasury plays were taken by investors and traders, who hoped the companies would outperform their underlying crypto assets.
Fear has been created that these companies, due to their negative price performance in 2025, may exacerbate the next crypto downturn through forced selling to meet debt obligations.
Altcoin Treasury Strategies Are Struggling Even More
A decline of about 87% has been observed in shares of SharpLink Gaming, an Ether treasury company, since May 2025, when the stock spiked to around $124 per share. At the time of this writing, SharpLink is trading at about $15.72.
A parabolic rally has been experienced by ETH in recent months, with its price rising by about 115% since May.
A decline of over 97% has been sustained by Helius Medical Technologies, a Solana treasury company, according to Yahoo Finance.
SOL has only sustained a decline of about 33% from its all-time high of about $295, which was reached in January amid the memecoin frenzy.
A decline of about 77% has been experienced by CEA Industries, a company that converted to a BNB treasury company in 2025, since it reached a peak of over $34 in August before falling sharply.
The company’s sharp decline was experienced by CEA Industries as BNB’s price rallied in August. Shares of CEA Industries are currently trading at about $7.75, while BNB reached a new all-time high of over $1,000 in September.
