[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-0-en-105":3,"doc-seo-291294-105":59,"doc-detail-291294-en":122},{"code":4,"msg":5,"data":6},0,"success",[7,13,18,23,28,33,38,43,48,51,55],{"id":8,"doc_module":4,"doc_module_name":9,"category_name":10,"show_sort_weight":11,"slug":12},1,"Document","Story & Novel",90,"story-novel",{"id":14,"doc_module":4,"doc_module_name":9,"category_name":15,"show_sort_weight":16,"slug":17},2,"Literature",80,"literature",{"id":19,"doc_module":4,"doc_module_name":9,"category_name":20,"show_sort_weight":21,"slug":22},4,"Exam",70,"exam",{"id":24,"doc_module":4,"doc_module_name":9,"category_name":25,"show_sort_weight":26,"slug":27},5,"Comic",60,"comic",{"id":29,"doc_module":4,"doc_module_name":9,"category_name":30,"show_sort_weight":31,"slug":32},6,"Technology",50,"technology",{"id":34,"doc_module":4,"doc_module_name":9,"category_name":35,"show_sort_weight":36,"slug":37},7,"Healthcare",40,"healthcare",{"id":39,"doc_module":4,"doc_module_name":9,"category_name":40,"show_sort_weight":41,"slug":42},8,"Research & Report",30,"research-report",{"id":44,"doc_module":4,"doc_module_name":9,"category_name":45,"show_sort_weight":46,"slug":47},9,"Religion & Spirituality",20,"religion-spirituality",{"id":46,"doc_module":4,"doc_module_name":9,"category_name":49,"show_sort_weight":46,"slug":50},"World Cup","world-cup",{"id":52,"doc_module":4,"doc_module_name":9,"category_name":53,"show_sort_weight":52,"slug":54},10,"Lifestyle","lifestyle",{"id":56,"doc_module":4,"doc_module_name":9,"category_name":57,"show_sort_weight":24,"slug":58},19,"General","general",{"code":4,"msg":60,"data":61},"ok",{"site_id":62,"language":63,"slug":64,"title":65,"keywords":66,"description":67,"schema_data":68,"social_meta":115,"head_meta":117,"extra_data":119,"updated_unix":121},105,"en","funding-fragility-in-digital-asset-treasury-companies-preferred-claims-mnav-compression-and-forced-sale-risk","Funding Fragility in Digital Asset Treasury Companies - Preferred Claims, mNAV Compression, and Forced-Sale Risk","","Digital asset treasury (DAT) companies combine volatile crypto-asset holdings with public-company capital structures. This article builds a survival-risk framework showing how crypto drawdowns transmit through market net asset value (mNAV) compression, preferred-equity fixed claims, and re-financing constraints into forced-sale risk. The study uses source-traced two-case stress tests, constructing balance-sheet inputs, market measures, preferred price-to-par and yield metrics, and scenario grids over drawdowns, liquidity haircuts, and 12- and 24-month horizons. Under the stated assumptions, fixed funding obligations and cash runway dominate near-term outcomes, and survival hinges on market access when the corporate wrapper trades near or below crypto NAV.",{"@graph":69,"@context":114},[70,84,105],{"@type":71,"itemListElement":72},"BreadcrumbList",[73,77,79,82],{"item":74,"name":75,"@type":76,"position":8},"https://docshare.wps.com","Home","ListItem",{"item":78,"name":9,"@type":76,"position":14},"https://docshare.wps.com/document/",{"item":80,"name":40,"@type":76,"position":81},"https://docshare.wps.com/document/research-report/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/funding-fragility-in-digital-asset-treasury-companies-preferred-claims-mnav-compression-and-forced-sale-risk/291294/",{"url":83,"name":65,"@type":85,"image":86,"author":91,"headline":65,"publisher":94,"fileFormat":97,"inLanguage":63,"description":67,"dateModified":98,"datePublished":99,"encodingFormat":97,"isAccessibleForFree":100,"interactionStatistic":101},"DigitalDocument",{"url":87,"@type":88,"width":89,"height":90},"https://docshare.wps.com/thumbnails/funding-fragility-in-digital-asset-treasury-companies-preferred-claims-mnav-compression-and-forced-sale-risk/291294.png","ImageObject",300,407,{"name":92,"@type":93},"Franzy","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-10-29","2026-09-17",true,{"@type":102,"interactionType":103,"userInteractionCount":52},"InteractionCounter",{"@type":104},"ViewAction",{"@type":106,"mainEntity":107},"FAQPage",[108],{"name":109,"@type":110,"acceptedAnswer":111},"What is the role of mNAV compression in the framework?","Question",{"text":112,"@type":113},"mNAV compression is treated as a market-access state rather than an intrinsic valuation. When the wrapper trades near or below crypto NAV, issuance may become more dilutive or practically unavailable, tightening survival conditions.","Answer","https://schema.org",{"og:url":83,"og:type":116,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":118,"canonical":83},"index,follow",{"doc_id":120,"site_id":62},291294,1789644315,{"code":4,"msg":5,"data":123},{"doc_id":120,"user_id":124,"nickname":92,"user_avatar":125,"doc_module":4,"category_id":39,"category_name":40,"doc_title":65,"doc_description":67,"doc_content":126,"file_id":127,"file_url":128,"file_type":129,"file_size":130,"view_count":52,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":131,"language":132,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":133,"faqs":134,"seo_title":135,"seo_description":67,"update_tm":121,"read_time":136,"preview_page_count":4},2336478945519,"https://ap-avatar.wpscdn.com/davatar_085a072bc5b1113ac321206ff7593b45","Funding Fragility in Digital Asset Treasury Companies: Preferred Claims, mNAV Compression, and Forced-Sale Risk  \nHongzhe Wen  \nWashington University in St. Louis  \nResearch Article  \nKeywords: Digital asset treasury companies, cryptocurrency risk management, digital finance, mNAV, preferred claims, stress testing  \nPosted Date: July 8th, 2026  \nDOI: [https://doi.org/10.21203/rs.3.rs-10207300/v1](https://doi.org/10.21203/rs.3.rs-10207300/v1)  \nLicense: 􀁱 􀅏 This work is licensed under a Creative Commons Attribution 4.0 International License.  \nRead Full License  \nAdditional Declarations: No competing interests reported.  \nFunding Fragility in Digital Asset Treasury Companies: Preferred Claims, mNAV Compression, and Forced-Sale Risk  \nHongzhe Wen 1*  \n1*Washington University in St. Louis, St. Louis, MO, 63130, USA.  \nCorresponding author(s). E-mail(s): [hongzhewen01@gmail.com](hongzhewen01@gmail.com) ;  \nAbstract  \nDigital asset treasury (DAT) companies combine volatile crypto-asset holdings with public-company capital structures. This article develops a survival-risk framework for how crypto drawdowns can transmit through market net asset value (mNAV) compression, preferred-equity fixed claims, and refinancing constraints into forced-sale risk. The setting is a source-traced two-case stress test: Strategy Inc. as a Bitcoin (BTC) DAT with disclosed preferred securities, including STRC, and BitMine Immersion Technologies as an Ether (ETH) DAT with BMNP Series A preferred stock and disclosed staked-ETH and cash inputs. The method constructs source-traced balance-sheet inputs, market-price measures, preferred price-to-par and effective-yield metrics, threshold summaries, and a scenario grid over drawdowns, mNAV states, preferred price-to-par,financing regimes, liquidity haircuts, and 12-and 24-month horizons. Under the specified assumptions, preferred funding creates a fixed-claim channel, while cash buffers and horizon length dominate near-term forced-sale outcomes. Survival risk depends less on a single crypto price threshold than on cash runway, fixed obligations, and market access when the corporate wrapper trades near or below crypto net asset value.  \nThe contribution is a replicable digital-finance risk-management template for DAT disclosure, market-access monitoring, and stress testing, not an investment recommendation or prediction.  \nKeywords: Digital asset treasury companies; cryptocurrency risk management; digital finance; mNAV; preferred claims; stress testing  \nJEL Classification: G32; G33; G12; C58  \n1 Introduction  \nDigital asset treasury (DAT) companies are public companies whose market identity and balance-sheet risk are materially shaped by crypto-asset treasury holdings. Digital asset treasury companies represent a corporate balance-sheet interface between digital asset markets and public equity markets. They differ from ordinary operating companies with incidental crypto exposure because crypto assets are not a peripheral cash-management item. In a DAT, treasury assets, common-equity valuation, preferred or debt financing, investor clientele, disclosure practice, and market access are linked. A crypto drawdown can therefore reduce asset value while also changing the market value of the corporate wrapper and the feasibility of new financing.  \nThis structure creates a risk-management problem rather than a simple valuation problem. A DAT can hold a large amount of Bitcoin or Ether and still face a liquidity problem if fixed claims, operating needs, or financing constraints arrive before market access reopens. Conversely, a DAT can experience a large crypto drawdown without immediate forced sales if cash buffers, maturity structure, and feasible financing capacity are sufficient. The relevant survival question is therefore not whether the common stock has upside. It is whether liquid resources plus feasible financing capacity can cover fixed claims and a stress buffer without forcing crypto-asset sales.  \nPreferred equity is important in","cbCairr8R3nkNuC6","https://ap.wps.com/l/cbCairr8R3nkNuC6","pdf",719888,17,"English","# Abstract\n# 1 Introduction\n## Digital asset treasury (DAT) companies as a balance-sheet interface\n## Risk-management problem: liquidity versus valuation\n## Role of preferred equity and fixed claims\n## mNAV compression as a market-access state\n## Nonlinear effects in crypto bear markets\n## Source-traced case studies (Strategy and BitMine)","[{\"question\":\"What is the role of mNAV compression in the framework?\",\"answer\":\"mNAV compression is treated as a market-access state rather than an intrinsic valuation. When the wrapper trades near or below crypto NAV, issuance may become more dilutive or practically unavailable, tightening survival conditions.\"}]","Funding Fragility in Digital Asset Treasury Companies - Preferred Claims, mNAV Compression, and Forced-Sale Risk | PDF",43]