Bitcoin Dips Below $85k As Dats Face ‘mnav Rollercoaster’: Finance...

The volatility of the cryptocurrency market is threatening the stability of corporate crypto treasury companies, resulting in larger swings in their net asset value that threaten their fundraising abilities.

Cryptocurrency markets experienced another week of downside as investor activity gradually wound down ahead of the holiday period.

Bitcoin (BTC) fell over 5% during the past week, dipping to a weekly low of $84,398 on Thursday, before recovering to trade above $87,769 on Friday, TradingView data shows.

Crypto market volatility continues to threaten the sustainability of digital asset treasury (DAT) companies, as their longevity now depends on avoiding the multiple-to-net-asset-value (mNAV) “roller coaster,” making these firms subject to the value swings of the tokens held on their balance sheet, according to Solmate CEO Marco Santori.

In the wider cryptocurrency space, the US Securities and Exchange Commission (SEC) dropped its four-year investigation into Aave, marking a significant regulatory win for the industry.

Following the development, Stani Kulechov, the founder of Aave, unveiled the 2026 “master plan” for the decentralized lending platform, aiming to capture $1 billion worth of value through real-world asset deposits by launching Aave v4, Horizon, and the Aave App.

The rise of digital asset treasury companies will go down as a meta-narrative of 2025, but the longevity of the movement will be decided by capital management and sound business strategies.

According to Solmate CEO Marco Santori, all DATs have to contend with the value of the underlying token they hold on their balance sheets. This shouldn’t be a problem for revenue-generating businesses, but pure-play DATs will be in for a bumpy ride.

“The multiple-to-net-asset value is how a lot of these treasury companies survive. If they’re trading at a high mNAV, meaning their market cap is bigger than the value of the coins they have on the balance sheet, then they can sell stock in an accretive way,” Santori said on Cointelegraph’s Chain Reaction X show.

But the issue is that mNAV will dwindle when the interest in the underlying token of a DAT wanes. Santori explained that falling token prices result in lower mNAVs.

Source: CoinTelegraph