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 to access and invest in the traditional financial world, combined with crypto markets. The durability of these valuations may hinge on thoughtful execution and the uncorrelated tailwinds from underlying crypto assets.
Strategy’s $2.5B STRC raise signals a new era of yield-bearing Bitcoin instruments
Strategy, one of Wall Street’s most prominent corporate holders of Bitcoin, has reinforced its position as a de facto Bitcoin proxy with the launch of a landmark capital raise. The company closed a $2.5 billion offering on Tuesday, making it the largest crypto-linked equity raise of the year. The deal was executed through a newly created class of perpetual preferred stock called STRC, which pays a floating monthly dividend beginning at 9%.
According to the company’s statement, the proceeds from the STRC issuance were used to purchase 21,021 BTC at an average price of $117,256 per coin. This brings Strategy’s total Bitcoin holdings to an astounding 628,791 BTC, valued at over $74 billion at current market prices.
STRC is expected to debut on the Nasdaq on Wednesday. Once listed, it will become the first US exchange-listed perpetual preferred security issued by a Bitcoin treasury company that offers monthly dividend payments, the company said.
The STRC raise also marks Strategy’s largest capital raise to date, eclipsing its $800 million convertible note offering from June 2024. It follows the launch of STRF in March, which Strategy’s executive chairman, Michael Saylor, once described as the firm’s “crown jewel.” The STRF product was backed by a $2.1 billion at-the-market equity program.
However, unlike STRF—which was primarily targeted at institutional investors—the new STRC product is designed with retail income investors in mind. Its floating monthly payouts and lack of maturity make it appealing to those seeking stable yield exposure linked to Bitcoin, without the risk of spot market volatility.
“Yield products such as this offer exposure without direct spot market volatility,” Vincent Liu, chief investment officer at Kronos Research, said. “It represents meaningful progress in structured capital flows that deepen Bitcoin liquidity without pressuring the order book.”
The innovative structure of STRC underscores a broader trend among corporate Bitcoin holders who are seeking to monetize their BTC reserves and attract new classes of investors.
