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.
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.
Source: Google Finance
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.”
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 downturn coincided with broader market turmoil.
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.
Reacting to the massive liquidation, Bitcoin, for instance, dropped to 6 6-month low, trading very closely to $101K.
Metaplanet is far from alone in its struggles.
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.
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.
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.
Several companies have resorted to desperate measures.