mNAV metric for ETH treasury companies fell under 1.0, signaling weakening demand for the company shares

ETH treasuries are growing to record levels, with almost daily aggressive buying. However, the shares of ETH treasury companies often trade below their net asset value. 

ETH treasuries remain one of the strongest narratives, with almost daily buying from some of the top companies. The strong performance of ETH in August accelerated treasury buying, with the biggest purchases coming from BitMine (BMNR) and SharpLink Gaming (SBET). 

Despite the hype around treasury companies, most of the leading entities are trading under their net asset value. The mNAV metric attempts to gauge the relationship between the public stock price and the underlying assets. 

Based on the experience of Strategy (MSTR), treasury companies often traded at a higher mNAV. The stock premium was mostly due to exuberance and the promise of more purchases as the stock rallied. 

This time around, some view the low mNAV on ETH treasuries as a bargain. 

$SBET

-Mnav 0.88 is a steal
-ETH might go down more but this is too attractive
-Management has stated that they are not dilutive ATM at mnav<1
-Nothing has changed other than price why bearish then

Stay convicted! pic.twitter.com/K4Zkh7Fg6E

— WhitePine (@WhitePine009) September 5, 2025

However, unlike ETFs, treasury companies have no obligation to reimburse holders or use their ETH as collateral. Others believe the lower share price may be a trap for investors expecting robust exposure to ETH. 

There is currently no consensus on whether the falling mNAV metrics are a sign of a downward spiral for ETH companies or a short-term market bottom. 

ETH treasury stockholders face greater risks

The buyers of ETH treasury stocks may be facing even greater risks compared to holding an ETF or outright buying ETH. Based on Messari analysis, buyers may be exposed to share dilution, company-specific operating expenses, financing risk due to increased regulations of offerings, and governance concerns. 

The accrued ETH treasuries are under no constraints for the type of custody and usage. The leading buyers are also using ETH for staking and liquid staking, exposing the treasury to technical risk.

A share price below mNAV has affected SBET with a ratio of 0.86%. The Ether Machine has the lowest mNAV ratio of 0.07%. ETHZilla Corporation stands at 0.78 mNAV. BMNR still reports a 1.05% ratio, though updated information may push the metric under 1. 

ETH stabilized around $4,300, with significant daily whale moves and treasury additions. The token is still seen as potentially bullish, with more tokens locked for staking and dwindling reserves on exchanges.

ETH treasury companies faced a worse mNAV ratio in August

Messari Crypto noted most of the ETH companies sank under a ratio of 1 in August, despite the ETH rally. 

The recent values will stress-test the buying strategy, which depends on a slight premium and bullish exuberance to work. For now, treasury companies show no signs of stopping their buying spree, despite the weakening stock prices. 

Additionally, some treasuries have been acquired previously and do not depend on public stock offers. There is also no consensus on how the treasuries would be used or staked, and how the passive income would be distributed. 

A total of 71 companies have announced ETH treasuries. The cut-off for a treasury company is just 100 ETH, as in the case of Coinage Media. Public companies like Yungfeng Financial managed to boost their stock price with just 10K ETH, though sitting at an extremely low mNAV ratio. There is still no standard on the size of ETH purchases, which can translate into a meaningful boost to the stock price. 

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