Corporate digital asset activity remained subdued week over week following the repercussions of recent crypto deleveraging, with Wall Street broker B. Riley reporting that capital flows began to stabilize as U.S.-China trade negotiations progressed.
Earlier this month, the broker initiated coverage of digital asset treasury companies (DATCOs) BitMine Immersion Technologies (BMNR), SharpLink Gaming (SBET), FG Nexus (FGNX), Kindly MD (NAKA), and Sequans Communications (SQNS), granting each a buy rating.
“Despite the market’s weakness, DATCOs have continued to accumulate crypto,” noted analysts Fedor Shabalin and Nick Giles in their Wednesday report.
BitMine Immersion led its competitors, adding approximately $300 million in ether and boosting its concentration ratio to 10.6 ETH per 1,000 shares, compared to the group average of 3.9x among ETH-focused companies, the analysts indicated.
Among the 25 firms tracked by the broker, the median market net asset value (NAV) increased to 1.1x from 1.0x, while the average remained steady at 1.0x.
B. Riley anticipates firms trading below NAV to initiate stock buybacks to narrow valuation discrepancies, referring to ETHZilla’s (ETHZ) successful monetization of crypto holdings to repurchase shares.
This strategy is seen as particularly important for Sequans Communications, which trades at the highest discount in the group at 0.7x NAV and is scheduled to report third-quarter results on Nov. 4 before the market opens.
In a significant advancement for institutional crypto adoption, solana launched its first spot exchange-traded funds (ETFs) in Hong Kong and the U.S., attracting $800 million in inflows on the first day, the report mentioned.
B. Riley stated that this introduction solidifies solana’s position as a tier-one asset alongside bitcoin and ether.
The firm’s analysts continue to regard BitMine Immersion as the most well-positioned entity within its DATCO coverage, while noting a quiet week for its other leading pick, SharpLink Gaming, which lacked significant catalysts.
Read more: Crypto Treasury Firms Keep Buying Bitcoin. Outperforming ETFs Is the Hard Part
