Digital asset treasury companies are facing significant challenges as their market-to-net asset value (mNAV) ratios decline, making it difficult to raise capital. With key players like BitMine and SharpLink Gaming reporting mNAVs below 1.0, the erosion jeopardizes capital-raising efforts and could lead to share dilution. mNAV compares a company's stock value to its assets, significantly impacting cash-raising through at-the-market (ATM) equity programs. As Ethereum's volatility plays a role, the competition from spot Ethereum ETFs is exacerbating the situation, making investors hesitant to pay premiums for the same ETH exposure. As firms like SharpLink recently added substantial ETH to their treasuries, the outlook remains crucial for Q4. Should Ethereum experience a bullish run, it could revive mNAVs and reinstate favorable stock issuance terms. However, if market conditions worsen, raising cash could become an arduous task, forcing firms to rely on staking yields in a constrained funding environment.

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