Two major digital-asset treasury (DAT) companies continued their purchasing strategies during the week of June 14, despite a downward trend in the value of their cryptocurrency holdings. Strategy acquired an additional 520 Bitcoin tokens for $35 million, bringing its total to an impressive 847,363 Bitcoin. Meanwhile, Bitmine Immersion Technologies added 52,203 Ethereum to its portfolio for $92 million.
The rationale behind these acquisitions from both companies remains unchanged: they believe these assets are currently undervalued and are confident in their long-term potential. This perspective raises important questions for investors contemplating whether to buy shares of these companies themselves.
Understanding the Dynamics of Digital-Asset Treasury Companies
It is generally advantageous to invest in digital-asset treasury firms when their stock prices exceed the underlying value of the cryptocurrency they hold, a metric known as market value to net asset value (mNAV). A positive mNAV, particularly above 1.0, allows these companies to effectively issue shares at a premium, empowering them to reinvest in additional cryptocurrencies without diluting their existing shareholder base. This creates a cycle where increasing stock prices allow for more cryptocurrency purchases, which can further enhance the stock’s value.
Conversely, when mNAV drops below 1.0, it can indicate potential turmoil for shareholders. Currently, Strategy is trading at an mNAV of 0.63, reflecting a 43% drop in stock value in 2026. Bitmine fared slightly better with an mNAV of 0.97, but its shares have still plummeted by 51% in the same period. Notably, Hyperliquid Strategies stands out with an mNAV of 1.86, seeing a remarkable 98% increase in value over the past year.
Marketplace Conditions and Strategic Acquisitions
The short-term losses faced by Strategy and Bitmine raises concerns for investors, but the companies maintain that their strategies could yield long-term benefits. Strategy’s Bitcoin holdings represent about 4% of the total supply, a hard cap of 21 million coins; further buying could therefore restrict the available float, potentially benefiting Bitcoin holders.
In contrast, Ethereum’s supply is inflationary and lacks a strict cap. Bitmine’s 4.7% stake in Ethereum doesn’t result in the same tightening effect on supply, making future price increases less reliable.
It’s worth noting that while spot Bitcoin ETFs provide direct access to the value of the cryptocurrency’s scarcity, treasury companies do not offer this same advantage. Investors in DATs face overhead costs, volatility associated with the underlying asset, and the challenges of managing corporate governance.
Considering the associated risks and costs, acquiring shares in treasury companies tends to bundle various financial burdens—overhead expenses, debt obligations, and management decisions—along with the inherent volatility of the cryptocurrencies in their portfolios. This complexity dilutes potential returns and adds a layer of governance risk linked to both the company leadership and the cryptocurrency assets themselves.
In contrast, spot crypto ETFs usually impose minimal fees, making them comparable to the costs of directly holding cryptocurrencies in a wallet. Given these factors, many investors find themselves questioning the value of owning shares in digital-asset treasury companies, weighing them against the advantages of purchasing cryptocurrencies or ETFs directly.
