Corporate digital asset deployments remain weak from a week ago as deleveraging continues, but investment banker B. Reilly said selling pressure has eased on optimism that sentiment will pick up once the U.S. government shutdown is lifted.
Bitmine Immersion Technologies (BMNR), rated Buy despite compressed market net asset value (mNAV), led the accumulation, adding approximately $360 million in Ether. Ethereum$3,543.88the bank said in a report on Wednesday.
This raised the company's ratio to 11.2 ethers per 1,000 shares, significantly higher than its peers' average of 4.0 ethers per 1,000 shares, analysts Fedor Shabalin and Nick Giles wrote.
Across the 25 digital asset government bonds tracked by B. Riley, the median mNAV has fallen from 1.0 to 0.9, but valuations are still considered compelling given the deep discounts on crypto holdings.
Analysts noted that corporate holdings of Bitcoin have led to the digital asset's government bonds underperforming the underlying token for three consecutive weeks. BTC$104,891.83ether and solana sol$159.44 They decreased by 5.2%, 4.5%, and 0.9%, respectively.
Still, the slowing pace of decline could be a sign of selling fatigue, analysts said.
Short sellers have begun covering positions in companies such as Strategy (MSTR), whose multiple has narrowed to 1.1x from 2.0x in July, which the bank's analysts interpret as a potential recovery.
Improvements in the macro environment, including potential government funding deals and greater adoption of stablecoins, could trigger a recovery, the report said.
read more: Cryptocurrency treasury activity remains slow, but capital flows are recovering: B. Riley
