MNAV Crash: Standard Chartered Names Only Two DAT Stocks Likely to Survive, the Rest Face Crisis

Standard Chartered Bank's latest report indicates that the mNAV of most digital asset reserve companies (DAT) has fallen below a critical threshold, leading to a stagnation in purchasing power. Only a few, such as MicroStrategy and BitMine, still have scale and low financing costs, maintaining an advantage. As investors shift to a more cautious stance, the market is expected to accelerate into a "the big get bigger" consolidation scenario.

mNAV falls across the board: DATs indicator triggers alarm

mNAV, as the ratio of the current stock price to the value of its owned crypto assets, has always been an indicator for investors to assess the premium or discount of the market value and stock price of crypto reserve companies, and it is also a barometer for the crypto market's willingness to buy into such companies.

Once the value is above 1, it indicates that the company has the capacity to issue new shares and continue to accumulate crypto assets; conversely, if it falls below 1, the difficulty of expansion will increase.

Standard Chartered Bank pointed out that recently, multiple companies such as Metaplanet, Sharplink Gaming, Upexi, and DeFi Development Corp have seen their mNAV fall into decline:

Several well-known crypto reserve companies have recently fallen below their key mNAV level, which effectively cuts off their ability to continue purchasing digital assets.

The bank stated that the decline in mNAV is mainly due to investors turning cautious, the rapid expansion and saturation of the market, and the inability of some companies to sustain their business models.

Standard Chartered names: MSTR and BMNR still have survival advantages

If mNAV continues to be sluggish, Standard Chartered Bank expects the DAT market to experience differentiation and consolidation, with large DATs maintaining an advantage due to their scale and financing capabilities, while they may also acquire weaker competitors.

For example, MicroStrategy can maintain its aggressive Bitcoin buying spree by acquiring its DAT peers at a discounted price.

In the past six months, many companies have abandoned their core businesses to transform into DAT, attempting to ride the wave of crypto reserve concept stocks initiated by MicroStrategy, MetaPlanet, and BitMine. Now, these models have fallen into difficulties just a few months later.

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The venture capital firm Breed also stated that only a few DATs can escape the potential death spiral after the collapse of mNAV:

Ultimately, only a few companies can win it all through their leadership, execution, and marketing strategies, continuously accumulating their digital assets amid future market fluctuations.

(Dragonfly Partners: Shitcoin reserve companies have only one way to go, DAT needs a differentiated story )

Community Voice: Investors need to reduce leveraged positions.

MegaETH Labs contributor Bread expressed a pessimistic stance, believing that the comprehensive compression of DAT mNAV indicates weak market purchasing power; gold and the S&P index have reached new highs, but mainstream crypto assets are stagnating or even falling; although the inflow of crypto ETFs is abundant, most have shifted towards BTC.

However, in the face of concerns from comments, the inflow of funds in the DAT part comes from leverage, making the market seem precarious. He replied: "I believe we are still in a structural upward phase, but we need to be mindful to reduce some leverage positions."

( The gateway to liquidity is about to open: US stocks have reached historical highs, gold is growing steadily, what kind of script will the crypto market replay? )

Looking forward to the acceleration of DAT consolidation: the pattern of the bigger becoming bigger is taking shape.

Standard Chartered expects that the current environment will force weak DATs to exit the market, while top companies are likely to expand their territory through mergers and acquisitions, consolidating their first-mover advantage. As the mNAV collapse brews uncertainty, the entire DAT track is gradually moving towards a new pattern of few winners.

This article mNAV has completely crashed: Standard Chartered Bank specifically named only two DAT stocks that are likely to survive, while the others will face a crisis. First appeared on Chain News ABMedia.