B. Riley Slashes Crypto Treasury Stock Targets as Datcos Collapse Faster Than BTC and ETH
Digital-asset treasury companies—known widely as “datcos”—have taken a sharper hit than the cryptocurrencies they accumulate, prompting B. Riley analysts to cut their outlook across the sector.
In a new report, analysts Fedor Shabalin and Nick Giles said valuations for publicly traded treasury accumulators have “compressed meaningfully” since October as macroeconomic pressures dampen new token purchases and trim expected returns.
The declines significantly outpaced the drop in major cryptocurrencies themselves. According to B. Riley’s data, Bitcoin-focused treasury companies are down about 37%, while BTC has fallen only 16%.
ETH treasuries have dropped 39%, compared with a 22% slide in ether, and SOL-treasury names are down a staggering 59% against solana’s 28% decline.
The steeper losses suggest investors are re-pricing these companies not only on token weakness but also on reduced confidence in their asset-accumulation strategies—long considered the core driver of their market-value-to-net-asset-value (mNAV) premiums.
B. Riley Slashes mNAV Forecasts and Share Price Targets
The report outlines a broad recalibration across B. Riley’s coverage universe, with analysts cutting both their mNAV assumptions and accumulation estimates through 2026.
Share price targets were lowered across the board, though the bank maintained buy ratings for all covered names—signaling that it still sees long-term value in the beaten-down sector.
For BitMine Immersion Technologies (BMNR), one of the largest ETH treasury players, the target price was cut nearly in half—from $90 to $47.
BitMine share price (Source: Google Finance)
The reduction reflects lower assumed token accumulation going forward, though analysts highlighted BitMine’s continued aggressive ether purchases as a positive.
FG Nexus (FGNX), another ETH-heavy treasury firm, saw its target lowered from $8 to $5. B. Riley cited slower-than-expected third-quarter ether accumulation and the company’s current 0.7x mNAV valuation, which limits accretive use of its at-the-money issuance program. The bank kept its buy rating in place, and shares rose 3.5% early Thursday to $2.69.
KindlyMD (NAKA) had its price target cut to $1 from $2, also with a buy rating intact. The firm noted that NAKA continues to trade near 0.7x BTC NAV—levels B. Riley still considers compelling.
KindlyMD share price (Source: Google Finance)
Sequans (SQNS) also saw a trimmed target—from $13 to $11—while maintaining a buy rating. The analysts described the company’s discount to NAV as “attractive” relative to peers.
SharpLink Gaming (SBET) stood out as the only company to retain its existing price target. B. Riley reiterated its $19 target and buy rating, citing updated ETH yield assumptions and management’s push into more advanced ether staking and restaking strategies.
Analysts Say Market Still Undervalues Datcos
Despite months of heavy selling pressure and the downward revisions, B. Riley argues that the sector remains undervalued—especially for companies trading below their mNAV levels.
The bank emphasized that the market is discounting the long-term upside potential of firms that continue to accumulate BTC, ETH, and SOL at suppressed valuations.
The analysts expect more aggressive return-on-equity strategies in the coming quarters, including buybacks, preferred share offerings, discounted token accumulation, and more sophisticated ether restaking programs designed to boost yields.
A rebound, they said, will hinge on steadier crypto markets and improved investor confidence in datco yield strategies. “Execution and follow-through will be critical,” the analysts wrote.
BitMine and SharpLink Remain Top ETH Treasury Picks
Among the companies covered, BitMine and SharpLink remain B. Riley’s highest-conviction names in the ETH treasury category. Both firms have weathered the sell-off more effectively than peers and continue to demonstrate accumulation discipline and yield innovation.
The report concludes that while the sector remains battered, the dislocation may offer opportunity for investors with longer time horizons—especially if crypto markets stabilize and companies deliver on their yield-expansion plans.
