The crypto markets have surged approximately 10% since November 20, with ether-linked digital asset treasury companies (DATCOs) being key beneficiaries, as reported by B. Riley, an investment bank.
This rise has been attributed to an increased risk appetite following comments from the European Central Bank (ECB) that have revived discussions about a gradual shift away from the U.S. dollar as the leading reserve currency, in addition to anticipations of interest rate cuts.
Among the 25 DATCOs tracked by B. Riley, the median mNAV increased to about 1.0x from 0.9x since the last update, with the average also climbing to approximately 1.0x from 0.9x.
mNAV is a measure that relates a company’s enterprise value (EV)—calculated as market cap plus debt minus any cash—to the market value of its crypto assets.
According to analysts Fedor Shabalin and Nick Giles, performance trends have leaned toward leverage-like ventures based on crypto prices in their report released on Wednesday.
Since November 20, the analysts estimated that bitcoin treasury companies experienced an average gain of around 20%, while ether treasuries surged approximately 28%, and SOL treasuries increased about 12%, while the Russell 2000 stock index experienced a roughly 7% gain. During the same period, the underlying tokens registered a rise of 7% , 13% and 4% , respectively.
The bank’s analysts emphasized that a rebound for DATCOs relies on two key factors: stabilization in the overall crypto market and companies successfully implementing return-on-equity initiatives to drive yield.
With these conditions largely satisfied, the analysts underscored BitMine Immersion Technologies (BMNR) as a buy, assigning a price target of $47, especially after the stock surged 51% since November 20, contrasting with an 28% growth for ETH-focused DATCOs and a 7% escalation in the Russell 2000.
Within their coverage scope, the bank remains most optimistic about BMNR and SharpLink Gaming (SBET), which is also rated as a buy with a $19 price target, branding them as two leading ETH DATCOs engaged in staking and restaking strategies.
B. Riley also identified FG Nexus (FGNX), Sequans Communications (SQNS), and Kindly MD (NAKA) as promising value opportunities currently trading at discounts to mNAV, despite maintaining operational businesses.
Read more: B. Riley Cuts Digital Asset Treasury Company Price Targets as Crypto Slump Deepens
