ME News reports that on June 3 (UTC+8), Bitmine, Tom Lee’s Ethereum treasury company, announced plans to publicly offer $300 million in perpetual preferred shares with a 9.50% dividend, paid weekly in cash. Earlier in late May, Strategy sold its first Bitcoin in four years—32 BTC, worth approximately $2.5 million—to cover preferred dividend payments, triggering a market crash: Bitcoin fell below $65,000 and dropped over 14% within two trading days. These two events highlight a shared dilemma facing DAT companies: once mNAV (market value-to-asset ratio—the market’s valuation of each dollar of crypto held by the company)—falls below 1, equity fundraising channels effectively shut down. Dividends and debt obligations remain fixed expenses, forcing companies to sell crypto assets to meet them, which in turn intensifies selling pressure—creating a downward spiral. Currently, Strategy and Bitmine have mNAV ratios of 0.82 and 0.80, respectively. SoSoValue researchers believe that liquidity in this Bitcoin cycle has been driven sequentially by two engines: first, DAT companies borrowing to buy crypto, followed by sustained net inflows into spot ETFs. Now, both engines have stalled: SoSoValue’s ETF and crypto-equity dashboards show that BTC spot ETFs have experienced 12 consecutive days of net outflows, totaling nearly $4 billion; ETH spot ETFs have seen 16 consecutive days of net outflows, totaling approximately $800 million; and DAT companies led by Strategy and Bitmine have collectively fallen below mNAV 1. With both major sources of new capital drying up, it remains to be seen whether the crisis facing DAT companies marks the bottom of this crypto cycle. (Source: ODAILY)
DAT companies face crisis as mNAV falls below 1 and ETFs continue net outflows
KuCoinFlashShare
Summary
The Fear and Greed Index signals extreme caution as DAT companies struggle, with mNAV falling below 1. ETF outflows continue to accelerate, with BTC spot ETFs experiencing 12 consecutive days of net outflows totaling nearly $4 billion, and ETH ETFs losing $800 million over 16 days. Bitmine plans to issue 9.50% perpetual preferred shares to raise $300 million, while Strategy sold 32 BTC in late May to cover dividends. Both firms now trade at an mNAV of 0.82 and 0.80, as the DAT sector collectively falls below par. ETF outflows and weak sentiment suggest the cycle may not yet have reached its bottom.
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