This week saw the two biggest crypto treasury firms, Bitcoin-centric Strategy (formerly MicroStrategy) and Ethereum-heavy BitMine, significantly expanding their digital asset holdings despite a decrease in their premium.
On December 8, Strategy disclosed the acquisition of 10,624 BTC for $962.7 million, marking its largest weekly investment since July. This move seemingly disregarded the broader trend in the equity market, where MSTR stock has plummeted 51% year-over-year, trading at $178.99.
Similarly, BitMine, the largest corporate Ethereum holder, increased its balance sheet by 138,452 ETH.
These purchases occur amid structural pressures on the broader Digital Asset Treasury (DAT) model.
In recent months, the arbitrage position that allowed public companies to trade at 2.5 times their Net Asset Value (NAV) while raising equity for acquisitions is waning. For perspective, Strategy’s premium to NAV (mNAV) is now close to 1.15, with BitMine’s around 1.17.
This illustrates that the firms’ “infinite money glitch,” referring to leveraging stock issuance at inflated valuations for asset purchases below intrinsic levels, is no longer effective.
In essence, the structural advantage that characterized the first half of 2025 has dissipated, leaving the two main DATs to purchase during downturns—an indication of the existing fragility in the corporate-crypto environment.
Their mechanics under stress
Strategy’s recent acquisition has brought its total holdings to 660,624 BTC, over 3% of Bitcoin’s total supply, valued at approximately $60 billion based on current market rates, which includes over $10 billion in unrealized gains.
However, the funding mechanism for this growth is facing immediate challenges, as the most recent purchase was largely financed through common-stock issuance—a strategy that is advantageous only if the firm trades at a premium to its underlying assets.
Historically, Strategy benefited from a recursive loop, issuing shares at a premium, buying Bitcoin at market rates, and increasing value per share.
This model depended on momentum, where Bitcoin strength led to equity demand, which in turn financed further BTC acquisitions.
Now, however, that reflexivity appears to be failing. Bitcoin has retraced from its October peak of $126,000, fluctuating between $90,000 and $95,000.
Data from NYDIG indicates a correlation between DAT premiums and the trend strength of the underlying asset. When momentum falters, the market’s willingness to pay a premium for corporate exposure diminishes.
This has considerably affected the stock prices of Strategy and other crypto treasury companies.
The risk for Strategy has now become strictly mechanical: if the firm’s multiple falls below 1.0, issuing stock results in dilution rather than an increase in value.
Notably, management has acknowledged this risk. If mNAV dips below parity, the company indicated it “would consider selling Bitcoin.”
Such a move would reverse the feedback loop, leading to a scenario where weakness in equity compels asset sales, driving down Bitcoin spot prices and further decreasing Strategy’s valuation.
In response, Strategy raised $1.44 billion to enhance liquidity following investor concerns about debt servicing in a low-premium climate.
CEO Phong Le stated this cash reserve is essential to “dispel FUD” and create operational leeway through 2026.
Despite this defensive positioning, Executive Chairman Michael Saylor depicts the recent BTC purchasing activity as a sign of strength. This view was also reflected by former White House official Anthony Scaramucci, who stated:
“The [recent] equity sales are accretive (albeit barely), but very astute for his balance sheet — and the overall BTC market.”
Nonetheless, the trade’s math points to a diminishing pathway. Each stock issuance pushes the company nearer to the breakeven limit where the model’s economics collapse.
Yield versus store of value
While Strategy upholds a store-of-value argument, BitMine has shifted toward a yield-generating sovereign wealth model.
BitMine’s Ethereum accumulation accelerated after a post-October 10 liquidation event that had disrupted derivatives liquidity and unsettled broader markets.
The firm now holds 3.86 million ETH (approximately 3.2% of the circulating supply) and is escalating purchases to meet a self-imposed “5% ownership threshold.”
BitMine aims to transform these holdings into a network-native income stream via staking, with a validator rollout planned for 2026. The firm anticipates that this treasury size could yield over 100,000 ETH annually at current rates.
This strategy distinctly contrasts BitMine’s solvency model with that of Strategy, which relies on collateral appreciation and a persistent premium to sustain operations. In contrast, BitMine is establishing a solvency framework based on future cash flows.
Chairman Tom Lee explicitly connects this strategy with institutional adoption patterns. Lee remarked that “Wall Street wants to tokenize all financial products,” estimating the total addressable asset base to be “almost a quadrillion dollars.”
He referred to stablecoins as “Ethereum’s ChatGPT moment,” signifying their role as a trigger for institutions recognizing the utility of tokenized dollars.
In his viewpoint, this would be notably favorable for ETH, which he believes is experiencing its “1971” moment of acceptance.
However, this pivot carries execution risks, as validator income will not manifest until 2026. Moreover, Ethereum has historically lagged behind Bitcoin during market stress periods.
Nevertheless, BitMine’s aggressive buy-in suggests that the industry’s trend toward tokenization and programmable money will deepen, providing a safety net for ETH demand amid current fluctuations.
Essentially, the firm is betting on the “Fusaka” upgrade and interest from institutions to stabilize conditions, a perspective that contrasts with the evident skepticism in the equity markets.
The erasure of access arbitrage
Both companies are also facing a structural challenge that transcends price movements: the commoditization of crypto access.
The introduction of spot ETFs earlier in 2024 temporarily revitalized the DAT model, but recent capital flows have reversed that trend.
According to Coinperps data, the total assets under management of US spot Bitcoin ETFs have plummeted by nearly $50 billion, from over $165 billion in October to approximately $118 billion, before recovering slightly to $122 billion as of this report.
Nonetheless, this decline hasn’t diminished market interest in such financial investment vehicles. Significant evidence is provided by major brokerage firm Vanguard, which recently reversed its anti-crypto stance and allowed third-party crypto ETFs.
This has notably flattened the market structure, eliminating the distribution gap that previously justified paying premiums for DAT equities.
Consequently, data from Capriole reveals that no new DAT formations have occurred in the past month. Furthermore, signs of treasury unwinds are starting to emerge among smaller market players.
This essentially indicates that the “tourist class” of corporate players—those adding minimal BTC or ETH positions to attract shareholder interest—has exited the arena. What remains are larger incumbents with enough liquidity to handle treasury operations on a substantial scale.
This commoditization compels Strategy and BitMine to differentiate themselves through financial engineering instead of access.
Investors can now acquire Bitcoin and Ethereum at NAV via an ETF without incurring a premium.
As a result, they expect DATs to deliver performance that surpasses this baseline through leverage, yield, or strategic timing. The narrative of purchasing stock merely to gain crypto exposure is outdated.
What do we learn from this?
The purchasing actions of these firms indicate conviction but also highlight a structural squeeze.
Michael Saylor-led Strategy is defending the mechanics of its issuance framework, while BitMine is advocating for the timeline of its anticipated yield.
Ultimately, both firms are navigating an environment where the premium—the crucial fuel for their expansion—is contracting with each passing quarter.
Their future hinges on three key factors: a resurgence of crypto demand in 2026, stabilization of NAV premiums above parity, and the realization of enterprise flows from tokenization.
