rewrite this title Stunning crypto treasury mNAV slide puts 4% of Bitcoin at risk as Ethereum remains strong

Digital asset treasuries have come under renewed pressure after a sharp drop in their market net asset values, or mNAVs, raising doubts about their ability to sustain continued crypto purchases, according to Geoffrey Kendrick, head of digital assets research at Standard Chartered.

Listed companies that hold digital assets on their balance sheets, known as digital asset treasuries, or DATs, have seen share prices decline in recent weeks as investors reassess the sustainability of their strategies.

Kendrick said that an mNAV above 1 is essential for DATs to expand their holdings, while values below that threshold signal weaker balance sheets and potential consolidation.

Differentiation among DATs

Kendrick said the current downturn may create opportunities for differentiation rather than signaling the end of the sector.

Factors such as access to low-cost funding, scale advantages, and yield from staking or DeFi are expected to separate stronger players from weaker ones.

Ethereum-focused DATs are seen as the most sustainable, partly because staking returns can directly enhance mNAVs. Bitmine strategist Tom Lee has estimated that staking alone could add 0.6 points to the mNAV of Ethereum-based DATs.

This dynamic positions Ethereum vehicles more favorably than those tied primarily to Bitcoin or Solana, which lack similar yield mechanics.

Implications for crypto markets

DATs collectively hold about 4% of Bitcoin, 3.1% of Ethereum, and 0.8% of Solana in circulation, making their health a key driver of crypto demand.

Kendrick said consolidation is more likely among Bitcoin treasuries, leading to coin rotation rather than net new buying. By contrast, Ethereum DATs are poised to keep accumulating, providing a stronger tailwind for ether prices relative to rivals.

Key players in the sector include Bitmine, SharpLink, and The Ether Machine, all of which have become closely watched by investors who track the intersection of corporate balance sheets and digital assets.

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