The boom in crypto treasury firms — companies holding large amounts of Bitcoin on their balance sheets — could be heading for turbulence, according to New York Digital Investment Group (NYDIG).
Premiums to Net Asset Value Shrink
Greg Cipolaro, NYDIG’s global head of research, noted that the gap between the share price and net asset value (NAV) of major Bitcoin-holding firms like Strategy and Metaplanet has continued to narrow, even as Bitcoin trades near all-time highs.
“The forces behind this compression are varied,” Cipolaro explained. These include:
- Investor anxiety over upcoming supply unlocks
- Profit-taking from early investors
- A surge in share issuance
- Limited differentiation in treasury strategies
- Shifting corporate objectives among digital asset treasury (DAT) firms
This narrowing gap indicates that investor enthusiasm is cooling, despite Bitcoin’s recent price rally above $110,000.
Risks of Shareholder Sell-Offs
Cipolaro cautioned that many treasury firms are awaiting financing rounds or public listings. Once shares become freely tradeable, there could be a “substantial wave of selling”, especially if stock prices dip below NAV.
To protect shareholder value, NYDIG suggests that treasury firms should prepare for share buyback programs. “If we were to give one piece of advice to DATs, it’s to save some of the funds raised aside to support shares via buybacks,” Cipolaro said.
Slowing Bitcoin Purchases Despite Record Holdings
Despite challenges, crypto treasuries collectively hold a record 840,000 BTC in 2025, with Strategy accounting for 76% (637,000 BTC). However, purchasing momentum has slowed sharply:
- Strategy’s average monthly growth dropped to 5% in August, compared to 44% at the end of 2024.
- Other firms’ growth slowed to 8% in August, down from 163% in March.
- Strategy’s average purchase size fell to 1,200 BTC, compared to a peak of 14,000 BTC earlier in the year.
This slowdown highlights a cooling appetite for large-scale Bitcoin acquisitions, even as institutional interest remains strong.
While the sector has drawn billions from Wall Street over the past year, the narrowing premiums and slowing BTC purchases suggest that crypto treasury stocks may be in for volatility.
Bitcoin itself has remained steady around $111,200, though it is still down 10.5% from its mid-August peak of $124,000.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.