The Net Asset Values in Digital Asset Treasuries are down, but it’s not all bad, says 10x Research.
“The age of financial magic is ending for Bitcoin treasury companies,” According to 10x Research Analysts in A report Cointelegraph published the following on Friday.
“They conjured billions in paper wealth by issuing shares far above their real Bitcoin value — until the illusion vanished,” Continued.
Here’s what I found “magic trick,” The DATs effectively transferred the wealth of retail investors that overpaid for their shares to actual Bitcoin.BTC) for the company. According to them, shareholders have lost billions of dollars while the executives amassed real BTC.
Researchers used Metaplanet to study the data. fourth-largest Bitcoin treasury company, as an illustration, has effectively converted a $8 billion market cap, supported by $1 billion Bitcoin holdings into a $3 billion market cap, backed by BTC worth $3.3 Billion.
Similar situation to Strategy
Investors paid up to 7 times more than the value of Bitcoin when they bought these shares in the hype. Now, those premiums are no longer there and most shareholders have lost their money. Companies converted the inflated capital back into Bitcoin.
Related: Bitcoin and DATs primed for explosive 2026: LONGITUDE
Michael Saylor’s Strategy also experienced similar results “boom-and-bust cycle in its net asset value,” Which has caused a slowdown. Bitcoin purchasesThey noted.
“With NAVs now having fully round-tripped, retail investors have lost billions—and many likely lack the conviction to keep adding to their positions.”
Bitcoin asset managers now fall into a new category
NAV has become a more accessible investment for investors. The companies that are now trading near or below NAV provide pure Bitcoin exposure, with the possibility of future alpha generation as well as upside potential from any trading profit.
Shakeouts have also isolated the true operators from those who are just marketing machines. Firms that make it through this phase will have been tested, are well capitalized, and can generate consistent returns. They’ll be a brand new class of Bitcoin asset managers.
DATs Now you can adapt “define the next bull market,” The researchers concluded by saying:
“Bitcoin itself will continue to evolve, and Digital Asset Treasury firms with strong capital bases and trading-savvy management teams may still generate meaningful alpha.”
Strategy, Metaplanet stock sinks
MSTR, the strategy stock, ended trading Friday at $289.87. The stock has dropped 39% in price since the November 2024 high of $473.83. according Google Finance
Metaplanet (MTPLF), a stock listed on the Tokyo Stock Exchange, lost 6.5% yesterday. The shares fell to 402 yen (2.67 dollars) and are now down by 2.5%. tanked Since mid-June, when they peaked at 1,895 yen (12.58 dollars), 79% of their value has fallen.
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Source: cointelegraph.com
