The two largest crypto treasury companies, Bitcoin-focused Strategy (formerly MicroStrategy) and Ethereum-heavy BitMine, executed significant expansions of their digital asset treasuries this week despite their falling premium.
On Dec. 8, Strategy revealed that it acquired 10,624 BTC last week for $962.7 million, its largest weekly outlay since July. This purchase effectively ignored the broader signal from the equity market, where its MSTR stock has declined 51% year-on-year to trade at $178.99.
Similarly, BitMine, the largest corporate holder of Ethereum, added 138,452 ETH to its balance sheet.
These acquisitions occur as the broader Digital Asset Treasury (DAT) model faces structural stress.
Over the past months, the arbitrage that permitted public companies to trade at multiples of 2.5 times their Net Asset Value (NAV) while issuing equity to fund acquisitions is closing. For context, Strategy’s premium to NAV (mNAV) now sits near 1.15, while that of BitMine stands around 1.17.
This effectively showed that these firm’s “infinite money glitch”, which is the market shorthand for printing stock at inflated valuations to purchase assets below intrinsic equity levels, is ceasing to function.
Essentially, the structural advantage that defined the first half of 2025 has evaporated, leaving the two largest DATs to buy into weakness for reasons that reveal the fragility of the current corporate-crypto landscape.
Their mechanics under stress
Strategy’s most recent acquisition brings its total holdings to 660,624 BTC, representing more than 3% of the total Bitcoin supply. At current market prices, this position is valued at roughly $60 billion, containing more than $10 billion in unrealized gains.
However, the funding mechanism for this growth faces immediate threats. The company funded its latest purchase mostly through common-stock issuance, a tactic that generates value only when the firm trades at a premium to its underlying assets.
For years, Strategy utilized a recursive loop that allowed it to issue shares at a premium, purchase Bitcoin at market price, and accrete value per share.
This model relied on momentum. Bitcoin strength generated equity demand, and equity demand financed further BTC acquisition.
However, that reflexivity is now failing. Bitcoin has retraced from its October peak of $126,000 to consolidate between $90,000 and $95,000.
Data from NYDIG indicates that DAT premiums tend to correlate with the trend strength of the underlying asset. When momentum stalls, the market’s willingness to pay a markup for exposure through a corporate wrapper declines.
As a result, this has significantly impacted the shares of Strategy and other crypto treasury firms.
The risk for Strategy is now strictly mechanical. If the firm’s multiple falls below 1.0, issuing stock becomes dilutive rather than accretive.
Notably, the company’s management has acknowledged this implication. If mNAV dips below parity, the company indicated it “would consider selling Bitcoin.”
Such a move would invert the feedback loop, resulting in a situation where the equity weakness would force asset sales, driving down Bitcoin spot prices and further depressing Strategy’s valuation.
Considering this, Strategy raised $1.44 billion specifically to bolster liquidity following investor concerns regarding debt servicing in a low-premium environment.
Strategy CEO Phong Le stated this cash build was necessary to “dispel FUD” and establish an operational runway through 2026.
Despite this defensive posturing, Executive Chairman Michael Saylor frames the recent BTC purchasing activity as strength. This view was also echoed by Anthony Scaramucci, a former White House official, who said:
“The [recent] equity sales are accretive (albeit barely) but very smart for his balance sheet — and overall btc market.”
However, the mathematics of the trade suggest a narrower path. Every new issuance moves the company closer to the breakeven threshold where the model’s economics cease to function.
Yield versus store of value
While Strategy defends a store-of-value thesis, BitMine is executing a pivot toward a yield-bearing sovereign wealth model.
The firm’s accumulation of Ethereum has accelerated after a slowdown that followed the Oct. 10 liquidation event, a dislocation that drained derivatives liquidity and unsettled broader markets.
BitMine now holds 3.86 million ETH, (approximately 3.2% of the circulating supply) and is accelerating purchases to reach a self-designated “5% ownership threshold.”
BitMine intends to convert these holdings into a network-native income stream via staking, with a validator rollout scheduled for 2026. The firm projects that a treasury of this scale will generate more than 100,000 ETH annually in yield at current rates.
This approach differentiates BitMine’s solvency model from Strategy’s. Strategy relies on collateral appreciation and a persistent premium to maintain operations. On the other hand, BitMine is constructing a solvency model based on future cash flows.
Chairman Tom Lee explicitly links this strategy to institutional adoption trends. Lee noted that “Wall Street wants to tokenize all financial products,” estimating the total addressable asset base at “almost a quadrillion dollars.”
He characterized stablecoins as “Ethereum’s ChatGPT moment,” suggesting they served as the catalyst for institutions to recognize the utility of tokenized dollars.
According to him, this would be significantly beneficial to ETH which he believes is having its “1971” moment of adoption.
However, this pivot introduces execution risk. Validator income will not materialize until 2026. Furthermore, Ethereum has historically underperformed Bitcoin during periods of market stress.
Nonetheles, BitMine’s aggressive buying presumes that the industry’s shift toward tokenization and programmable money will deepen, providing a floor for ETH demand despite current volatility.
Essentially, the firm is betting that the “Fusaka” upgrade and institutional interest will stabilize conditions, a view that contrasts with the skepticism currently evident in the equity markets.
The erasure of acess arbitrage
Meanwhile, both companies contend with a structural challenge that extends beyond price action: the commoditization of crypto access.
The launch of spot ETFs in early 2024 provided the DAT model with a temporary relevance boost, but capital flows have recently reversed.
According to Coinperps data, US spot Bitcoin ETFs have seen their total assets under management drop by nearly $50 billion from a peak of more than $165 billion in October to as low as $1118 billion before recovering to $122 billion as of press time.
Nonetheless, this has not downed the undeniable market interest in this kind of financial investment vehicles. Evidence of this can be seen in the fact that major brokerage platform Vanguard recently walked back on its anti-crypto stance and opened its systems to third-party crypto ETFs.
This has significantly flattened the market structure and eliminates the distribution gap that previously justified paying premiums for DAT equities.
As a result, data from Capriole indicates no new DAT formations occurred in the last month. Furthermore, the data shows the first signs of treasury unwinds among smaller market participants.
This essentally shows that “tourist class” of corporate entrants—firms adding nominal BTC or ETH positions to stimulate shareholder interest—has exited the space. What remains are scaled incumbents possessing sufficient liquidity to execute treasury operations at volume.
This commoditization forces Strategy and BitMine to differentiate through financial engineering rather than access.
Investors can now purchase Bitcoin and Ethereum at NAV through an ETF without paying a premium.
Consequently, they expect DATs to deliver performance that exceeds that baseline through leverage, yield, or timing. The narrative of buying stock simply to gain crypto exposure is obsolete.
What do we learn from this?
These firms buying activity indicates conviction but also highlights a structural cornering.
Michael Saylor-led Strategy is defending the mechanics of its issuance model. On the other hand, BitMine is defending the timeline of its future yield.
Essentially, both firms operate in an environment where the premium, which is the essential fuel for their expansion contracts with each quarter.
Considering this, their future depends on three variables, including the resurgence of crypto demand in 2026, the stabilization of NAV premiums above parity, and the realization of enterprise flows from tokenization.
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