Crypto Treasuries Struggle with Narrowing Premiums and Slowing Growth

TLDR

• NYDIG warns that crypto treasuries face a challenging future as premiums continue to narrow.
• The gap between stock prices and net asset values of Bitcoin buying firms is steadily compressing.
• Investor anxiety, supply unlocks, and increasing share issuance are contributing to the premium compression.
• NYDIG advises crypto treasury firms to consider share buybacks to help support their stock prices.
• Bitcoin treasury holdings reached a peak this year, but the growth rate of purchases has slowed significantly.

Crypto treasury firms, particularly those investing in Bitcoin, are seeing their premiums narrow significantly. New York Digital Investment Group (NYDIG) highlighted that the gap between the stock price and net asset value (NAV) of major Bitcoin-buying firms, such as Metaplanet and Strategy, continues to compress. This trend persists despite Bitcoin’s price reaching new highs.

Investor Anxiety and Corporate Shifts Drive Premium Compression

Greg Cipolaro, global head of research at NYDIG, stated that several factors contribute to this trend. “Investor anxiety over forthcoming supply unlocks, changing corporate objectives from Digital Asset Treasury (DAT) management teams, and tangible increases in share issuance all play a role,” Cipolaro said. Moreover, investor profit-taking and a lack of differentiation among treasury strategies further complicate the situation.

The gap between stock prices and NAV, a key metric for assessing the health of crypto treasury firms, has been steadily shrinking. While this trend impacts both established and newer firms, it reflects broader investor concerns. Cipolaro warned that these pressures could continue unless crypto treasuries take proactive measures to address the issue.

Crypto Treasuries Urged to Consider Buybacks

Cipolaro emphasized the importance of share buyback programs for crypto treasuries in this environment. If a firm’s shares trade below its NAV, buying back stock could reduce the share supply, potentially boosting the price. “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 added.

This strategy could be vital for firms looking to stabilize their market position. As many treasury companies are waiting for mergers or financing deals to go public, Cipolaro cautioned that these could trigger substantial selling from existing shareholders. The potential for a share price drop in such scenarios could amplify these challenges.

Bitcoin Treasury Holdings Slow Down Amid Lower Purchases

Crypto treasury firms have reached new highs in Bitcoin holdings, with a total of 840,000 BTC accumulated this year. However, the growth rate of these holdings has slowed recently. The number of Bitcoin purchases per month has declined, with many firms buying fewer Bitcoin per transaction.

For example, Strategy’s average purchase size dropped to 1,200 BTC in August, a sharp decrease from its peak of 14,000 BTC in 2025. Other firms also experienced significant reductions in their monthly Bitcoin acquisitions. CryptoQuant noted that Strategy’s monthly growth rate fell to just 5% in August, a steep drop from 44% at the end of 2024.

Despite Bitcoin’s price trading flat at around $111,200, its value has decreased by 10.5% since mid-August. This price fluctuation, coupled with a reduction in Bitcoin purchases, signals that crypto treasuries may face a “bumpy ride” ahead. As premiums continue to compress and investor sentiment remains uncertain, these firms will need to navigate carefully to maintain stability.

The post Crypto Treasuries Struggle with Narrowing Premiums and Slowing Growth appeared first on CoinCentral.