Ether Digital Asset Treasury Companies Outpace Peers as Crypto Tailwinds Build, Says B. Riley
Crypto markets have risen about 10 percent since November 20, supported by European Central Bank comments on dollar diversification and expectations for rate cuts. Ether-focused digital asset treasury companies (DATCOs) have led these gains, increasing about 28 percent on average, compared to roughly 20 percent for Bitcoin (BTC) treasuries and 12 percent for Solana (SOL) treasuries. Across 25 tracked DATCOs, the median market NAV (mNAV), which measures a company's enterprise value relative to the market value of its crypto holdings, rose from about 0.9x to 1.0x, with the average mNAV also near 1.0x.
Underlying token gains since November 20 have been BTC up 7 percent, ETH up 13 percent, and SOL up 4 percent. Correspondingly, BTC treasuries gained about 20 percent, ETH treasuries about 28 percent, and SOL treasuries about 12 percent. The rebound in DATCOs is attributed to stabilization in the broader crypto market and companies executing return on equity accretive yield initiatives.
Among these, BitMine Immersion Technologies (BMNR) has seen notable growth, gaining about 51 percent since November 20. B. Riley identifies BMNR and SharpLink Gaming (SBET) as the most constructive ETH-focused DATCOs, both rated Buy with respective price targets of 47 and 19. Additionally, FG Nexus (FGNX), Sequans (SQNS), and Kindly MD (NAKA) are highlighted as value opportunities currently trading at discounts to their mNAVs despite having operating businesses.
