This week we added Crypto Treasury Companies to our index, a change that broadens the lens beyond operating businesses. We selected the top six by equity value: Strategy, Twenty One Capital, KindlyMD / Nakamoto, Metaplanet, Strive Asset Management, and Sharplink.
The key metric to watch is mNAV, the multiple of net asset value. We define it as equity value divided by the total of crypto and cash. In principle, a holding company should trade near its asset value, which is where most of these companies were originally priced. Upon announcement, however, every name in this cohort traded up, at a large premium to NAV ranging from 1.8× with Strategy to 9.2× with Nakamoto; the median premium sits at roughly 3.7×.
Returns have been strong across the group. The median gain since the start of the year is 96%, led by DeFi Dev Corp at more than 4,681%. Volatility has been intense across these stocks; for example, Sharplink rose 71% this week, though it is down 42% for the month. The majority of the returns seem to come immediately at announcement, indicating that the initial PIPE investors gain most of the upside.
We’ll continue to track this group and specifically how mNAVs perform over time. We’re all very curious to see how this 2025 phenomenon will play out. Regardless, it has been an exceptional way for companies to raise large amounts of capital and sets a record for the number of crypto companies going public this year.
