Digital Asset Treasury Companies Centered on Ether Lead the Market as Crypto Momentum Builds: B. Riley

Ether-focused digital asset treasury companies (DATCOs) have outperformed peers since Nov. 20, supported by improving risk appetite, higher mNAVs, and staking-driven strategies, according to B. Riley.

Crypto markets have risen roughly 10% over the same period, with ether-linked DATCOs among the biggest beneficiaries. B. Riley attributes the gains to increased investor confidence following European Central Bank (ECB) comments hinting at a gradual move away from the U.S. dollar as the dominant reserve currency, coupled with expectations of interest rate cuts.

Among the 25 DATCOs tracked by the bank, median mNAV climbed to around 1.0x from 0.9x, with the average rising similarly. mNAV compares a company’s enterprise value (market cap plus debt minus cash) with the market value of its crypto holdings. Performance has leaned toward leverage-like plays on crypto prices, analysts Fedor Shabalin and Nick Giles noted.

Since Nov. 20, bitcoin treasuries gained about 20%, ether treasuries rose 28%, and SOL treasuries advanced 12%, versus a 7% increase in the Russell 2000. Underlying tokens gained roughly 7% each for BTC, ETH, and SOL.

The analysts highlighted that a DATCO rebound depends on crypto market stabilization and execution of return-on-equity accretive initiatives. With these catalysts largely in place, B. Riley spotlighted BitMine Immersion Technologies (BMNR), rated “buy” with a $47 price target, noting a 51% gain since Nov. 20. Other ETH-focused picks include SharpLink Gaming (SBET), buy-rated at $19, and value opportunities FG Nexus (FGNX), Sequans Communications (SQNS), and Kindly MD (NAKA), trading at discounts to mNAV despite active operations.

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