Public companies’ crypto holdings soar to $160b
The post Public companies’ crypto holdings soar to $160b appeared on BitcoinEthereumNews.com. The cumulative market capitalization of public companies that own crypto is now at $160 billion, up from roughly $90 billion to start the year — a new trend in which investors are hungry to get crypto exposure via US equities. This expansion over the last six months reflects a larger trend in corporate treasury strategies, where firms are beginning to look at digital assets and their role as a balance sheet asset on a more mainstream basis. Some of these firms have seen their share price rise by double-digits following the news of their crypto treasury, with markets reacting to this trend that is just taking off. mNAV and token-to-equity swaps offer whales strategic exit routes The mNAV (multiple of Net Asset Value) is key to understanding these treasury operators. It is calculated by multiplying the NAV of the token by a multiple of currency, which is derived by dividing the enterprise value by the NAV of the token. Although many of these treasury companies are trading above a premium mNAV, it’s not an automatic leveraged trade being put on, as speculative buying may force the price higher. The premium represents a market opinion on professional crypto management and institutional solidity, rather than simply asset backing. Treasury firms further give large holders of tokens the opportunity for an elegant exit, even when that can avoid liquidity constraints of the traditional market. Instead of dumping directly on exchanges and potentially damaging the value, whales start moving their holding onto treasury vehicles in return for equity shares. They can then sell these equity positions on traditional financial markets, and enjoy better liquidity and stable pricing of their equity, while remaining “diversified treasury” rather than simply having dumped tokens. This development tackles core liquidity problems in token markets while also inventing new ways…
The post Public companies’ crypto holdings soar to $160b appeared on BitcoinEthereumNews.com.
The cumulative market capitalization of public companies that own crypto is now at $160 billion, up from roughly $90 billion to start the year — a new trend in which investors are hungry to get crypto exposure via US equities. This expansion over the last six months reflects a larger trend in corporate treasury strategies, where firms are beginning to look at digital assets and their role as a balance sheet asset on a more mainstream basis. Some of these firms have seen their share price rise by double-digits following the news of their crypto treasury, with markets reacting to this trend that is just taking off. mNAV and token-to-equity swaps offer whales strategic exit routes The mNAV (multiple of Net Asset Value) is key to understanding these treasury operators. It is calculated by multiplying the NAV of the token by a multiple of currency, which is derived by dividing the enterprise value by the NAV of the token. Although many of these treasury companies are trading above a premium mNAV, it’s not an automatic leveraged trade being put on, as speculative buying may force the price higher. The premium represents a market opinion on professional crypto management and institutional solidity, rather than simply asset backing. Treasury firms further give large holders of tokens the opportunity for an elegant exit, even when that can avoid liquidity constraints of the traditional market. Instead of dumping directly on exchanges and potentially damaging the value, whales start moving their holding onto treasury vehicles in return for equity shares. They can then sell these equity positions on traditional financial markets, and enjoy better liquidity and stable pricing of their equity, while remaining “diversified treasury” rather than simply having dumped tokens. This development tackles core liquidity problems in token markets while also inventing new ways…
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