Crypto Downturn Prompts B. Riley to Slash Price Targets on Digital Asset Treasury Companies

B. Riley Lowers Price Targets on Digital Asset Treasury Firms Amid Sector Weakness

B. Riley has cut its price targets for digital-asset treasury companies, or “Datcos,” citing sector-wide pressures and slowing token accumulation that have weighed on valuations. The recent sell-off in these firms has outpaced declines in bitcoin BTC$86,501.56, ether ETH$2,843.73, and solana SOL$132.49.

Analysts Fedor Shabalin and Nick Giles highlighted that bitcoin-focused treasuries are down roughly 37%, ETH treasuries 39%, and SOL treasuries 59%, compared with underlying token drops of 16%, 22%, and 28%, respectively. The team also reduced mNAV and accumulation assumptions through 2026 while maintaining buy ratings across their coverage.

Key adjustments include:

• BitMine (BMNR): Target lowered to $47 from $90; buy rating maintained. The firm continues aggressive ether accumulation. Shares rose 4.6% pre-market to $30.50.
• FG Nexus (FGNX): Target cut to $5 from $8 due to slower Q3 ether buildup and a 0.7x mNAV, limiting accretive ATM usage. Buy rating retained; shares up 3.5% to $2.69.
• Kindly MD (NAKA): Target halved to $1; buy rating unchanged. The company’s 0.7x BTC NAV remains compelling. Shares rose 2.5% to $0.55.
• Sequans (SQNS): Target reduced to $11 from $13; buy rating maintained. Shares gained 5% pre-market to $5.90.
• SharpLink Gaming (SBET): Buy rating and $19 target reaffirmed, highlighting management’s focus on advanced ETH yield strategies. Shares climbed 3.6% to $10.22.

Despite recent weakness, B. Riley notes that Datcos trading below mNAV remain undervalued. Analysts expect firms to continue deploying ROE-enhancing initiatives, including buybacks, preferred share offerings, and advanced ether restaking programs.

The bank emphasized that a sector rebound depends on steadier crypto markets and effective execution of yield strategies. BitMine and SharpLink remain the analysts’ top ETH treasury picks, demonstrating the most resilience in a challenged market.

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