Corporate digital asset activity remained muted week-on-week amid fallout from recent crypto deleveraging, with Wall Street broker B. Riley noting capital flows began to normalize as US-China trade talks advanced.
Earlier this month, the broker started coverage of Digital Asset Treasury Companies .
“Despite market weakness, Datcos continue to accumulate crypto,” analysts Fedor Shabalin and Nick Giles wrote in Wednesday’s report.
Bitmine Immersion LED Peers, adding approximately $300 million to ether and lifting its concentration ratio to 10.6 ETH per 1,000 shares, compared to a group average of 3.9x among ETH-focused companies, the analysts wrote.
Across the 25 companies tracked by the broker, the median market net asset value (NAV) improved to 1.1x from 1.0x, while the average held was steady at 1.0x.
B. Riley expects companies trading below NAV to initiate stock buybacks to narrow valuation gaps, citing the success of Ethzilla (ETHZ) monetizing crypto holdings Repayment of shares.
The broker said this approach is particularly relevant for Sequans communications, which trades at a steep discount to the group at 0.7X NAV and reports third-quarter results Nov. 4 before the market opens.
In a notable development for institutional crypto adoption, Solana Saw the Its first place debut Exchange-traded funds (ETF) in Hong Kong and the US, which drew $ 800 million in the first days inflows, the report noted.
B. Riley said the introduction cements Solana’s status as a tier-one asset alongside Bitcoin and ether.
The firm’s analysts continue to view Bitmine Immersion as the best-positioned name within its Datco range, while noting a quiet week for the other top pick, Sharplink Gaming, with no major catalysts.
Read more: Crypto Treasury companies continue to buy Bitcoin. The outperforming ETF is the hard part
