The post Treasury Strategy Weakens with Slowing Demand and Falling mNAV appeared on BitcoinEthereumNews.com.

After long being regarded as a major driver of institutional capital into crypto, the Treasury model shows cracks as buying demand drops sharply, many companies trade below their mNAV, and the risk of forced asset sales looms.  These signs suggest that the “treasury play” is no longer an unbeatable strategy, but could evolve into a systemic risk for BTC and ETH. Sponsored Sponsored Crypto Treasury Lost Magic? According to analyst Caprioleio, the pace of purchases by Bitcoin Treasury Companies (publicly traded firms that accumulate BTC as treasury assets) has slowed considerably. These firms are still buying, but daily purchases’ “frequency” and “intensity” have fallen compared to prior peaks. This shift has led the market to question whether the model remains sustainable or if it’s merely a temporary dip.  “Are institutions exhausted, or is it just a dip?” Caprioleio asked. Treasury company demand. Source: Caprioleio Sponsored Sponsored One view suggests that treasury companies act in cycles, rather than buying consistently. Their willingness to keep accumulating even during periods of lower rates shows a more strategic accumulation approach rather than fatigue. It may be a tactical pause before re-engaging.  “Probably just waiting for better entry points,” one X user shared. Beyond reduced accumulation, the market risks force treasury companies to sell assets. An analysis by TheDeFinvestor revealed that several ETH treasury companies are now trading below their mNAV. This means their public stock price is lower than the net value of ETH they hold. ETH treasury company’s mNAV. Source: TheDeFinvestor When mNAV < 1, the ability to raise funds through equity or bond issuance is impaired, companies that rely on continuous capital raises to purchase more ETH may hit a ceiling on available funding, and in a worst-case scenario, may be forced to sell assets to meet obligations. The system’s response to…

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Filed under: News - @ September 9, 2025 10:23 am