Ethereum Treasuries in Hot Water: 65% of Firms are Under mNAV!
What’s Cooking with Ethereum Treasuries?
So, here’s the juicy gossip in the crypto world: it turns out a big chunk of Ethereum treasury firms are struggling to stay afloat, like that last slice of pizza at a party no one wants. Reports indicate that a whopping 65% of these firms are trading below their mNAV (multiple of net asset value), and let’s just say that’s not a great day for business!
The Fancy Term: What is mNAV?
Before we dive deeper, let’s take a second to unpack this fancy term—mNAV. Think of it as a scorecard that tells you how a firm’s market cap stacks up against its total asset value. If a firm’s mNAV is below 1, it’s like saying your favorite ice cream shop is selling scoops that are worth less than the ingredients used to make them. Nobody wants that!
Who is Charles (The Crypto Whisperer) Edwards?
Our source of this spicy news is none other than Charles Edwards, the founder of Capriole Investments. This guy took to X (formerly known as Twitter) to drop some serious knowledge bombs about Ethereum treasury companies. He pointed out that post the epic splash made by Michael Saylor and MicroStrategy back in 2020, companies have been eyeing ETH like a dog watches a steak across the room—hungry and eager!
The Rollercoaster of Ethereum Prices
August was like the prom night for Ethereum treasuries, but ever since then, things have been a bit… awkward. Companies are still accumulating ETH, but the enthusiasm has taken a dip faster than your favorite celebrity when they trip on the red carpet! And even though there’s been some back-and-forth; ETH hasn’t come through without its bruises, flirted with that $3,000 line, but hey, it managed a snazzy comeback to around $3,200!
ETH Treasury Firms: The Good, The Bad, and the Ugly
Despite the dire stats, don’t count out these Ethereum-loving firms just yet! Charles shared that most firms are still holding onto their ETH assets—like people hoarding toilet paper during a pandemic. Yet, it’s interesting to note that nearly 64.3% of these companies are swimming in mNAVs below 1. Ouch! That’s like trying to swim with a life vest made of lead.
The Buy/Sell Drama
And before you picture a bunch of frazzled executives selling their homes to buy ETH, think again! The net buy/sell ratio still shows companies are being net buyers. Most are hunkering down, staying put on their ETH mountains, even as the sell ratio starts sliding down—talk about a wild ride!
Final Thoughts
So, are these Ethereum treasury companies facing some heavy turbulence? Absolutely! But will they sell off their assets like there’s no tomorrow? Not likely. With the crypto playground constantly evolving, it’ll be interesting to see if they can bounce back or if they’ll need a superhero to rescue them from the depths of despair. Stay tuned, folks!