The market capitalization of public companies holding cryptocurrencies in their portfolios has reached $160 billion. At the beginning of 2024, this figure was around $90 billion, indicating rapid growth over the past six months.
This is reported by Business • Media
Growing Investor Interest and New Market Opportunities
According to analysts, an increasing number of investors are choosing shares of public companies to invest in crypto assets. This approach allows for exposure to the crypto market using the stock market instead of direct purchases of cryptocurrencies. This is becoming particularly relevant in light of the increased legitimacy of cryptocurrencies within corporate asset structures.
“Cryptocurrencies are increasingly recognized as legitimate assets on balance sheets, and announcements regarding crypto treasuries are often accompanied by a significant increase in the stock prices of the respective companies.”
A significant metric for evaluating such companies is mNAV — the multiple of net asset value, determined by dividing the enterprise value by the net value of the token. While some companies trade at a premium to mNAV, experts note that this does not always indicate real leveraged exposure, as market prices can be driven up by speculative trades. The premium mostly reflects confidence in professional management of crypto assets and institutional legitimacy.
Exit for Whales and Impact on Liquidity
Crypto treasury companies have opened new pathways for large token holders (“whales”) who wish to exit the market without putting pressure on the market price. Instead of directly selling on crypto exchanges, which could lead to a collapse in asset value, they can transfer tokens to such companies in exchange for shares. These shares are then sold on traditional markets, providing greater liquidity and price stability.
This mechanism increases demand for crypto treasuries, and the market gains a tool for diversifying asset holdings. This approach helps address liquidity issues in the crypto market while simultaneously creating new investment opportunities at the intersection of traditional finance and Web3.
At the same time, the future dynamics of market capitalization will depend on the successful implementation of company strategies and the effectiveness of the crypto assets underlying the portfolios.
It was previously reported that the total capitalization of the crypto market exceeded $4 trillion.
