Crypto Treasury Firms Trade at 200% to 500% Premium Over mNAV
– NASDAQ-listed crypto treasury firms trade at 2x-5x premiums to mNAV, raising sustainability concerns over their speculative growth model.
– Companies leverage reverse takeovers/SPACs to let early investors (PIPEs) profit from immediate post-listing price surges.
– Self-reinforcing cycles of share issuance and crypto purchases risk long-term value erosion via high fees and collapsing premiums.
– Strategic advisors earn 1%-8% setup fees, mirroring Grayscale’s GBTC outflows as cheaper ETFs emerge in 2024.
– BitMEX warns firms may become “zombie” companies, urging investors to consider cost-effective Bitcoin ETFs instead.
