Will Modified Net Asset Value Premiums Face a Collapse?

Recently, market analysts have started to question the sustainability of the exorbitant premiums surrounding certain crypto treasury firms. A number of stocks within this sector are currently valued at two to seven times their modified net asset value (mNAV) — a price point that would be challenging to justify if these companies were simply storing Bitcoin (BTC) or Ethereum (ETH). Should these premiums reverse, the market could see billions in lost capitalization.

The leaders in this field are not solely benefiting from market hype. They have crafted operational models capable of supporting valuation premiums, even amid changing market conditions. They treat capital markets as an experimental space for products, devising and applying financial structures that create value at a pace that surpasses the appreciation of crypto itself. This ability is what allows Strategy, Metaplanet, and DeFi Development Corp to achieve their current valuations, while others with similar assets struggle.

Maintaining mNAV premiums is a complex endeavor that requires financial engineering, yield strategies, and strategic investments. To determine which crypto treasury strategy firms are investment-worthy, it’s essential to thoroughly evaluate their mNAV Premium strategies.

Capital structure engineering: the bedrock of value

Market premiums are rooted in well-structured capital. The leading crypto treasury companies create, issue, and refine financial instruments that raise capital at a premium, ensuring that each fundraising enhances crypto holdings more effectively than it dilutes shareholder equity.

Examples encompass zero-coupon convertible debt, preferred shares with embedded yields, at-the-market equity strategies, and moving-strike warrants. When executed correctly, these instruments enhance NAV-per-share rather than detracting from it.

Strategy has set an exemplary standard, raising nearly $20 billion in equity and convertible bonds to accumulate 580,000 BTC. In 2024, it issued a record-breaking $6.2 billion in convertible debt, and its latest preferred equity instrument (STRC) yielded around 10%, helping to propel its market cap to double that of its Bitcoin holdings.

Product velocity safeguards and extends premiums

Here, “products” denote financial structures, and the capability to swiftly deploy these is a significant competitive advantage. The best operators consistently adapt, aligning market sentiment with the most suitable instruments at opportune moments. These firms can be described as “Crypto Asset Product companies,” concentrating on the development of financial products around crypto.

Firms that can move quickly in favorable conditions are able to take advantage of bullish trends, hedge against downturns, and outperform competitors who are still finalizing agreements. Metaplanet showcased this by issuing 555 million moving-strike warrants (a first for Japan), securing around $5.4 billion for Bitcoin acquisitions. Likewise, DeFi Development Corp structured $75 million of a $112.5 million convertible note sale as prepaid forward agreements to minimize dilution while facilitating additional Solana (SOL) purchases.

Asset strategy transforms holdings into yield generators

A simplistic “buy and hold BTC” approach won’t sustain premiums. Leading firms diversify into ETH, SOL, and stablecoins, harvesting staking rewards, integrating with DeFi, and aligning with current market trends.

SharpLink Gaming illustrates this impact: after a $425 million private placement in June 2025, it boosted its ETH holdings from 198,200 to 360,807 within just a month, amassing 567 ETH in staking rewards. Yield-driven portfolios foster both tangible growth and narrative advantages, keeping investors engaged.

Efficiency in capital formation builds trust

Raising capital is easy in a bull market. However, doing so without jeopardizing shareholder value is a significant challenge. Leading firms prioritize minimizing dilution, aligning with long-term investors, and moving swiftly to capitalize on market momentum.

Metaplanet’s moving-strike warrants were not just innovative but also executed on a large scale, raising around $5.4 billion while maintaining a roughly 7x premium to modified NAV. This level of precision itself became a value driver, attracting institutional investment and reinforcing its premium.

Narrative credibility sustains premiums

Valuation multiples in this sector rely heavily on trust as much as on financial performance. Investors need to believe that each fundraising initiative will spur growth, that leadership can deliver effectively, and that innovation will thrive through diverse market cycles.

Strategy, Metaplanet, and DeFi Development Corp have demonstrated their ability to deliver, creating a self-perpetuating cycle: successful outcomes drive premiums, which enable capital raises, and those raises fund further successes.

The premium survival test

If modified NAV premiums begin to wane, not all companies will face the same repercussions. Firms excelling in capital structure engineering, product velocity, asset strategy, capital formation efficiency, and narrative credibility will be equipped to defend their valuations. Others will see their premiums evaporate.

In a landscape where anyone can own crypto, only the true capital engineers can convert those assets into lasting market influence — and maintain those premiums.