Crypto’s billions are back, but the premiums aren’t
Crypto companies are once again raising billions of dollars, but investors are becoming more selective about the valuations they are willing to pay.
Prediction market platform Kalshi is reportedly seeking around $1 billion at a $40 billion valuation, nearly double its $22 billion valuation from a $1 billion funding round in May. The latest round is reportedly being discussed with existing investors including Sequoia Capital and Wellington Management, although terms are not final.
Meanwhile, Blockchain.com is reportedly preparing for an IPO that could raise about $500 million, targeting a valuation of roughly $4 billion–$6 billion. That would be substantially below the $14 billion valuation the company reached during the previous crypto bull market.
The difference is even more pronounced among digital asset treasury companies. Research from DWF Ventures found that only 4 of the 20 largest crypto treasury firms trade above the value of their underlying crypto holdings, measured by mNAV above 1. The other companies trade at discounts to the value of their assets.
The report also highlights the challenge facing the crypto treasury model: when a company’s shares trade below the value of its crypto holdings, issuing new shares to buy more crypto can become dilutive, weakening the mechanism that previously allowed treasury companies to rapidly expand their crypto balances.
The broader picture is that crypto capital markets are reopening, but investors are no longer automatically assigning large premiums simply because a company has crypto exposure.
Crypto companies are once again raising billions of dollars, but investors are becoming more selective about the valuations they are willing to pay.
Prediction market platform Kalshi is reportedly seeking around $1 billion at a $40 billion valuation, nearly double its $22 billion valuation from a $1 billion funding round in May. The latest round is reportedly being discussed with existing investors including Sequoia Capital and Wellington Management, although terms are not final.
Meanwhile, Blockchain.com is reportedly preparing for an IPO that could raise about $500 million, targeting a valuation of roughly $4 billion–$6 billion. That would be substantially below the $14 billion valuation the company reached during the previous crypto bull market.
The difference is even more pronounced among digital asset treasury companies. Research from DWF Ventures found that only 4 of the 20 largest crypto treasury firms trade above the value of their underlying crypto holdings, measured by mNAV above 1. The other companies trade at discounts to the value of their assets.
The report also highlights the challenge facing the crypto treasury model: when a company’s shares trade below the value of its crypto holdings, issuing new shares to buy more crypto can become dilutive, weakening the mechanism that previously allowed treasury companies to rapidly expand their crypto balances.
The broader picture is that crypto capital markets are reopening, but investors are no longer automatically assigning large premiums simply because a company has crypto exposure.