The cryptocurrency treasury model is losing its advantage as equity premiums decline, according to DWF.

DWF Ventures published a report Thursday showing that the crypto treasury model has largely lost its early advantage. Only four of the 20 largest digital asset treasury companies by assets under management trade above a market value to net asset value ratio of 1, meaning their market value exceeds the value of the crypto they hold. That finding matters because the premium was the feature that allowed many of these companies to raise capital, accumulate more crypto and avoid diluting existing shareholders. With most now trading below that line, the public-market route to crypto exposure looks less powerful than it once did.

A Narrow Premium Club, and a Fading Flywheel

The four companies still trading above their crypto holdings are Bit Digital, Strive, Hyperliquid Strategies and BitMine. The report's chart, sourced from DWF Ventures, shows that the remaining digital asset treasury companies are not holding the same premium. DWF said the widespread discounts suggest investors are no longer willing to pay the same premium for crypto exposure through publicly traded companies.

Since Michael Saylor's Strategy pioneered the Bitcoin treasury model in 2020, most digital asset treasury stocks have underperformed simply holding the underlying crypto asset, according to DWF. Even among the stocks that have beaten the crypto itself, the advantage over direct holding has generally been small. The premium that investors once paid tended to peak when the strategy was new and attracting investor attention. Strategy's market value to net asset value ratio, for example, peaked in late 2024 during Bitcoin's rally, when demand for leveraged BTC exposure was strong.

Sequans Completes an Exit From the Model

The report lands as Sequans Communications, a French semiconductor company that launched a Bitcoin treasury strategy last year, disclosed that it sold its remaining 314 BTC. That completed an exit it began by redeeming its convertible debt in May. Sequans now holds no cryptocurrency on its balance sheet. The move gives readers a concrete example of how quickly a public company can step away from the treasury playbook once the premium no longer supports the strategy.

Earlier Warnings Point to Consolidation

DWF is not the only firm to flag the risk. Standard Chartered raised the issue in September 2025, when Bitcoin and the broader crypto market were booming, warning that a collapse in market value to net asset value premiums could lead to widespread consolidation among digital asset treasury companies. Galaxy Digital sounded a similar warning last year, arguing that the model critically depends on a persistent equity premium to net asset value.

That premium matters mechanically. It allows companies to issue shares and use the proceeds to buy more crypto without diluting existing shareholders' holdings. If shares trade below net asset value instead, raising equity to buy more crypto can become dilutive and undermine the strategy's core financing mechanism. "If the premium collapses, or worse, flips to a discount, the model begins to break," Will Owens, a Galaxy research analyst, wrote.

Price Swings and Capital Capacity Shape the Next Test

The model has proved harder to sustain this year, with Bitcoin falling from a record high of more than $126,000 last October to below $60,000 before recovering to around $86,000. The report also included a related item saying Strategy unveils $44.1 billion capital-raising capacity to buy more Bitcoin. A magazine item cited in the reporting asked whether Bitcoin treasury firms can outperform BTC and whether the risk is worth taking.

For readers, the next thing to watch is whether the four premium holders can keep their valuations above their crypto holdings, and whether discounted companies can still raise capital without diluting shareholders. The story is no longer just about owning Bitcoin through a listed company; it is about whether that structure can still finance itself. The market's verdict so far suggests the old premium-driven engine is cooling, and consolidation or exits may follow if discounts persist.