The boom in digital asset treasury (DAT) companies is fueled by Strategy’s Bitcoin-buying success, highlighting cryptocurrencies like Bitcoin, Ether, and Solana. However, recent market net asset value (mNAV) collapses have exposed smaller firms to growing risks, according to Standard Chartered. Several high-profile DATs have slipped below critical mNAV levels, hindering their ability to keep buying.

mNAV measures a company’s enterprise value to its cryptocurrency holdings ratio in the world of DATs. An mNAV above 1 allows firms to issue new shares and accumulate digital assets easily. When below this threshold, expanding holdings becomes harder and less wise. Standard Chartered observed a decline in mNAVs for various companies, signaling market differentiation and potential consolidation.

Standard Chartered warns that the recent collapse in DAT mNAVs could lead to market consolidation and differentiation. Larger, efficient firms with staking yields like Strategy and Bitmine may have an advantage. The research tracks companies like Strategy, Bitmine, Metaplanet, Sharplink Gaming, Upexi, and DeFi Development Corp, showing compressed valuations in recent weeks.

Read more at Cointelegraph: Digital Asset Treasuries Face mNAV Collapse, Standard Chartered Warns