Digital Asset Treasury selling near exhaustion as bitmine (BMNR) deepens ether (eth) bet: B. riley
Corporate Digital Asset Deployment remained muted week-over-week as deleveraging continued, but investment bank B. Riley said selling pressure was easing amid optimization at the end of the US government boosted sentiment.
Despite compressed net asset value (MNAV) values, buy-rate Bitmine Immersion Technologies (BMNR) led the accumulation, adding nearly $360 million in ether the bank said in a report Wednesday.
That increased its ratio to 11.2 ethers per 1,000 shares, which is higher than the 4.0 per 1,000 average of its peers, wrote analysts Fedor Shabalin and Nick Giles.
Across the 25 Digital Asset Treasuries tracked by B. Riley, the median MNAV fell to 0.9 from 1.0, with valuations still viewed as compelling given the steep discount to crypto holdings.
Analysts noted that digital asset assets were unchanged under tokens for a third week, with companies holding bitcoin Ether and Solana down 5.2%, 4.5% and 0.9%, respectively.
However, the damaging pace of the decline could indicate sales fatigue, analysts said.
Short sellers started positions in companies like Strategy (MSTR), whose multiple contracted to 1.1 from 2.0 in July, which bank analysts interpreted as a potential setup for a recovery.
According to the report, improving macro conditions, including a potential government funding deal and growing adoption of StableCoin, could slow a rebound.
Read more: Crypto Treasury activity is still, but capital flows: B.
