In a significant development within the cryptocurrency sector, Metaplanet Inc, a Tokyo-listed company, has seen its enterprise value drop below its Bitcoin reserves, marking a notable shift in the landscape for digital asset treasury companies. Bloomberg reported that the firm’s market net asset value (mNAV) fell to 0.99 on October 14. Currently, Metaplanet holds 30,823 Bitcoin, equating to approximately $3.4 billion, but its stock trades at a value less than this sum.
This alarming trend highlights a broader trend among cryptocurrency-focused firms, with many facing similar financial difficulties. Metaplanet’s share price peaked in mid-June but has plummeted by around 70% since, making it the first major Bitcoin treasury firm to experience a sustained trade below its asset holdings. At the time of the report, shares were trading at approximately 482 Yen ($3.21), down 12.36% for the day.
Mark Chadwick, a Japan equity analyst, characterized the situation as a “popping of a bubble,” suggesting that the initial excitement over Bitcoin accumulation has subsided. Nonetheless, he noted that long-term Bitcoin enthusiasts might view Metaplanet’s discount as an attractive buying opportunity. The decline in Metaplanet’s value comes amid broader market volatility, particularly after President Donald Trump’s announcement of increased tariffs on China, which led to significant liquidations—around $19 billion—on October 10. Following this, Bitcoin dropped to a six-month low, hovering near $101,000.
Metaplanet is not alone in facing such challenges; K33 Research highlights that a quarter of publicly traded companies holding Bitcoin now have market values falling below their Bitcoin assets. Specifically, 26 out of 168 Bitcoin-holding firms are trading at a discount. Amongst these, NAKA, a merger vehicle for KindlyMD and Nakamoto Holdings, suffered an alarming 96% drop in market value.
Additionally, other companies such as Twenty One, Semler Scientific, and The Smarter Web Company have also slipped below their net asset values. The trend signifies a significant compression of industry-wide premiums. The average mNAV for treasury firms dropped from 3.76 in April to 2.8. In September, these companies accumulated Bitcoin at the slowest pace since May, with daily additions dwindling to just 1,428 BTC.
Desperate measures are being taken by some firms to stem the tide. ETHZilla, previously known as 180 Life Sciences, secured $80 million in debt for a share buyback after its stock experienced a 76% decline from August peaks. Likewise, Empery Digital, an electric vehicle company, expanded its debt facility to $85 million for buybacks, even though its Bitcoin holdings surpass its market capitalization.
Analysts have long cautioned about potential downturns in the sector. Back in June, VanEck highlighted the risks tied to companies nearing parity with their Bitcoin holdings, advising firms against capital formation strategies that might lead to financial erosion. Currently, no public Bitcoin treasury company has sustained a trade below its Bitcoin NAV for an extended period, but the trend suggests this could be changing.
Corporate adoption of Bitcoin has also sharply declined by 95% since July, with only one company incorporating Bitcoin into its strategy in September, down from 21 in July. Amid escalating market pressures, the sector has seen a total of 205 publicly traded companies announce digital asset treasury strategies, after investing about $117 billion into cryptocurrencies.
Strategy Inc., previously known as MicroStrategy and considered a leading indicator in the industry, has witnessed its mNAV premium plummet from 3.89x in November 2024 to 1.44x. Monthly Bitcoin purchases by Strategy have significantly contracted, dropping from 134,000 BTC in November to merely 3,700 BTC by August 2025.
Research from Sentora and Coinbase indicates inherent vulnerabilities in corporate Bitcoin strategies. As interest rates rise and financial pressures mount, many companies’ existing strategies appear unsustainable. Both research entities emphasize that without yielding potential from Bitcoin investments, corporate treasuries may remain vulnerable to economic downturns and rising interest rates, raising critical questions about the future stability and viability of crypto treasury firms in a rapidly changing market.
