Ether-focused digital asset treasury companies (DATCOs) have outperformed peers since Nov. 20, driven by improving risk appetite, rising mNAVs, and staking-led strategies, according to investment bank B. Riley.

Crypto markets have climbed roughly 10% over the same period, with ether-linked DATCOs among the top beneficiaries. B. Riley attributes the gains to renewed investor confidence following European Central Bank (ECB) comments hinting at a gradual shift away from the U.S. dollar as the dominant reserve currency, alongside expectations for future interest rate cuts.

Across the 25 DATCOs tracked by the bank, median mNAV rose to about 1.0x from 0.9x, with the average also moving to roughly 1.0x. mNAV measures a company’s enterprise value (market cap plus debt minus cash) relative to the market value of its crypto holdings.

Performance has favored leverage-like exposure to crypto prices, analysts Fedor Shabalin and Nick Giles noted. Since Nov. 20, bitcoin treasury companies gained around 20% on average, ether treasuries rose roughly 28%, and SOL treasuries advanced about 12%, compared with a 7% increase in the Russell 2000 index. Over the same period, the underlying tokens gained 7% each for BTC, ETH, and SOL.

The analysts reiterated that a DATCO rebound depends on two catalysts: stabilization in the broader crypto market and companies executing return-on-equity accretive initiatives to generate yield. With both factors largely in place, the bank highlighted BitMine Immersion Technologies (BMNR), rated “buy” with a $47 price target, noting the stock gained 51% since Nov. 20, versus a 28% rise for ETH-focused DATCOs and 7% for the Russell 2000.

B. Riley remains most constructive on BMNR and SharpLink Gaming (SBET), buy-rated with a $19 price target, citing their leadership among ETH DATCOs pursuing staking and restaking strategies. Other value opportunities include FG Nexus (FGNX), Sequans Communications (SQNS), and Kindly MD (NAKA), which trade at discounts to mNAV despite having operating businesses.