by Coinstrooper Crypto Articles
Quick Take
  • The firm, as of Oct 14, now holds 30,823 Bitcoin worth approximately $3.4 billion, yet trades for less than the value of its crypto assets.
  • Notably, this growing financial imbalance facing Metaplanet is happening to the majority of digital asset treasury companies worldwide.
  • At the time of publication, the share is trading at 482 Yen ($3.21), down 12.36% today.
  • According to Bloomberg, Mark Chadwick, a Japan equity analyst who publishes research on Smartkarma, described the decline as “a popping of a bubble.”

What Happened

Crypto traders faced a record $19 billion in liquidations on October 10 after President Donald Trump announced harsher tariffs on China, triggering severe volatility that sent most major tokens tumbling.

Market Context

Metaplanet Inc’s enterprise value has dipped below its Bitcoin reserves, with the Tokyo-listed company’s mNAV (the ratio of its market capitalization and debt to its token holdings) falling to 0.99 on Tuesday, according to Bloomberg.

From All-Time Highs to Trading at Discount

At the time of publication, the share is trading at 482 Yen ($3.21), down 12.36% today.

The downturn coincided with broader market turmoil.

Reacting to the massive liquidation, Bitcoin, for instance, dropped to 6 6-month low, trading very closely to $101K.

K33 Research reports that a quarter of all public companies holding Bitcoin now trade at market values below their BTC holdings, with 26 out of 168 Bitcoin-holding firms trading at a discount.

The most dramatic collapse hit NAKA, the merger vehicle of KindlyMD and Nakamoto Holdings, which lost 96% of its market value from its peak and now trades at just 0.7x NAV, down from 75x.

Electric vehicle firm Empery Digital expanded its debt facility to $85 million for buybacks, despite holding $476 million in Bitcoin, which exceeds its $378 million market cap.

Back in June, VanEck warned that companies approaching parity with their Bitcoin holdings risk “erosion” rather than “capital formation.”

The firm’s head of digital assets research, Matthew Sigel, recommended pausing share issuance programs if stocks trade below 0.95 times NAV for 10 or more trading days.

Why It Matters

Chadwick believes that the “general euphoria” surrounding Bitcoin stockpiling has cooled, although “long-term Bitcoin bulls” may view Metaplanet’s discount as a buying opportunity, he noted.

The average mNAV across treasury firms dropped from 3.76 in April to 2.8, while daily Bitcoin accumulation by these companies slowed to just 1,428 BTC in September, which is the weakest pace since May.

Details

The firm, as of Oct 14, now holds 30,823 Bitcoin worth approximately $3.4 billion, yet trades for less than the value of its crypto assets.

Notably, this growing financial imbalance facing Metaplanet is happening to the majority of digital asset treasury companies worldwide.

Metaplanet’s shares reached an all-time high in mid-June but have since declined by about 70%, making the company the first major Bitcoin treasury firm to consistently trade below its holdings.

According to Bloomberg, Mark Chadwick, a Japan equity analyst who publishes research on Smartkarma, described the decline as “a popping of a bubble.”

Quarter of Bitcoin Treasuries Now Trade at Discount as Bubble Deflates

Metaplanet is far from alone in its struggles.

Other firms, including Twenty One, Semler Scientific, and The Smarter Web Company, have similarly fallen below their net asset values.

Industry-wide premiums have also compressed sharply.

Several companies have resorted to desperate measures.

ETHZilla, formerly 180 Life Sciences, secured $80 million in debt from Cumberland DRW to fund a $250 million share buyback after its stock fell 76% from August peaks.

Analysts have been warning about this burst since the beginning of the year.