“Heads You Win, Tails You Don’t Lose”: The Alarming Model Behind Crypto Treasury Stocks

• NASDAQ-listed crypto treasury firms are trading at steep premiums to their underlying crypto
• They are offering big short-term gains for PIPE investors.
• High advisory fees could erode value for years, with many firms eventually becoming “zombies” trading below mNAV.

The 2025 crypto market is witnessing a new speculative wave, with NASDAQ-listed crypto treasury companies emerging as this cycle’s equivalent of the 2017 ICO craze and the 2021 NFT boom. 

According to a detailed August 12 report by BitMEX Research, the model offers lucrative short-term gains for early insiders but could drain long-term investors through high fees and collapsing premiums to net asset value (mNAV).

How the “Treasury Company” Model Works

These companies often launch through a reverse takeover of a small, debt-free NASDAQ “zombie” firm or via a SPAC. Early backers, known as PIPE investors, buy in at or near the value of the cryptocurrency to be purchased. Once listed, the stock often trades at a premium, sometimes 2x to 5x its underlying mNAV.

That premium allows the company to issue even more shares at a high price, use the cash to buy more crypto, and push both the…

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