B. Riley Sees Crypto Treasury Recovery as BitMine Boosts ETH
Investment bank B. Riley reports easing selling pressure among digital asset treasury companies, citing early recovery signs as macro risks abate and short sellers cover. BitMine Immersion Technologies led accumulation, raising its ether holdings to 11.2 ETH per 1,000 shares—nearly triple the peer average of 4.0. Across 25 tracked treasuries, median market NAVs fell to 0.9 from 1.0, reflecting steep discounts to underlying crypto assets like bitcoin (BTC), ether (ETH) and solana (SOL), which are down 5.2%, 4.5% and 0.9% this week. Analysts highlight potential catalysts, including a US government funding deal and stablecoin adoption, for a rebound in digital asset treasury valuations.
Bullish
The report indicates a slowdown in selling pressure and signs of exhaustion among digital asset treasury stocks, underpinned by short sellers covering positions and a rise in Ether accumulation by BitMine. Historically, similar rebounds followed periods of heavy mNAV discounts and short covering, such as the late 2023 crypto market correction when treasury names outperformed post-covering. Additionally, potential macro catalysts, including a US government funding deal and expanding stablecoin adoption, support a bullish outlook. In the short term, traders may re-enter digital treasury equities anticipating value recovery; long term, narrowing discounts and improved market NAVs could sustain upward momentum in these sectors.