According to 10x research, the Net Asset Values of digital asset treasuries have fallen. However, this situation isn’t as bad as you might think and could be seen as an opportunity by savvy investors.
“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 accumulated actual BTC.
Researchers used Metaplanet to study the data. fourth-largest Bitcoin Treasury Firm, for example. The company transformed an $8 billion market capitalization, which was supported by only $1 billion of Bitcoin, into $3.1 billion with $3.3 billion BTC.
Similar situation to Strategy
During the initial hype, retail investors purchased these Bitcoin shares for two-seven times their actual value. 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 had a similar experience “boom-and-bust cycle in its net asset value,” Which has caused a slowdown. Bitcoin purchasesIt was noted that they were.
“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: A New Category
NAV has become a more accessible investment for investors. Now that companies are trading below NAV, they offer pure Bitcoin exposure. They also have the option to participate in future alpha production and gain from trading profits.
Shakeouts have also isolated the true operators from those who are just marketing machines. These firms will be well-capitalised, battle-tested and able to produce consistent returns. This new category of Bitcoin Asset Managers is the result.
DATs What will you do now? “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
The strategy stock (MSTR), which ended Friday’s trading at $289.87, gained 2%. It has however fallen by 39% from its closing price at $473.83, which was in November 2024. according Google Finance
Metaplanet’s (MTPLF ) shares dropped 6.5% to 402yen yesterday, a drop of $2.67. 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
