Standard Chartered has released a new report on the role of digital asset treasuries (DAT) in the cryptocurrency market. Geoffrey Kendrick, the bank’s global head of digital asset research, said that Ethereum would benefit more from acquisitions by DAT companies than Bitcoin and Solana.
According to Kendrick’s data, DATs currently hold 4% of all Bitcoin, 3.1% of Ethereum, and 0.8% of Solana. This size means the success or failure of treasuries could have a significant impact on coin prices.
Kendrick noted that the primary reason for the recent valuation squeeze for DATs is market saturation. He said the success of DATs going forward will depend on three key factors: financing cost, size, and yield.
Kendrick stated that Ethereum and Solana treasuries can reach higher valuations compared to Bitcoin-focused DATs thanks to staking returns, and noted that Ethereum has an advantage over Solana in this area because ETH treasuries are more established.
The report also noted that if some DATs trade below their asset value for an extended period, consolidation could be a possibility. It argued that such mergers are more likely, particularly in Bitcoin treasuries, but that this would likely lead to a redistribution of existing assets rather than generating new demand.
DAT companies have faced significant declines in their share prices in recent weeks, raising questions about their sustainable purchasing power in the markets. These companies need to trade above their market value to raise new funds and continue accumulating crypto assets.
Kendrick, noting the relative resilience of Ethereum-focused DATs, explained that BitMine Immersion (BMNR), the largest ETH treasury traded on the NYSE American, has continued its purchases after receiving approval for its strategy and currently holds over 2 million ETH. This amount corresponds to approximately 5% of the total supply.
Kendrick concluded his assessment with the following statements:
“From a relative perspective, we expect DATs to be a stronger price-supporting factor in Ethereum compared to Bitcoin and Solana.”
*This is not investment advice.