Ether-focused digital asset treasury companies (DATCOs) have outperformed peers since Nov. 20, driven by rising mNAVs, stronger risk appetite, and staking strategies, according to B. Riley.
Crypto markets have gained roughly 10% over the same period, with ether-linked DATCOs among the top beneficiaries. The bank attributes the gains to renewed investor confidence following European Central Bank (ECB) comments hinting at a gradual shift away from the U.S. dollar, alongside expectations for interest rate cuts.
Among 25 DATCOs tracked, median mNAV rose to 1.0x from 0.9x. Performance has favored leverage-like exposure to crypto: bitcoin treasuries gained ~20%, ether treasuries ~28%, and SOL treasuries ~12%, versus a 7% increase in the Russell 2000. Underlying tokens gained roughly 7% each.
B. Riley highlighted BitMine Immersion Technologies (BMNR), rated buy with a $47 target after a 51% gain since Nov. 20, and SharpLink Gaming (SBET), buy-rated at $19. Other opportunities include FG Nexus (FGNX), Sequans Communications (SQNS), and Kindly MD (NAKA), which trade below mNAV despite active operations.
