Metaplanet’s enterprise value fell below that of Bitcoins it held, and the company entered uncharted waters as the biggest Bitcoin public holder in the world.
Metaplanet’s market to Bitcoin NAV (mNAV) — a ratio between the company’s value and its Bitcoin (BTC) holdings — dropped below 1 on Tuesday, reaching 0.99 for the first time on record, according Data from official sources
Since mid-June the metric dropped more than seven points, and Metaplanet (3350), whose stock value fell from 1,895 Japanese Yuen ($13 per share) to $3.20, has lost 75 percent of its original value. according TradingView is a trading platform.
Metaplanet’s mNAV fell below 1, after the company stopped buying Bitcoin for the last two weeks. Its most recent BTC purchase was announced on September 30.
What is the importance of mNAV?
The mNAV, unlike traditional net asset values (NAV), is the ratio between enterprise value and Bitcoin NAV. It was designed to allow investors to gauge the value of the business in relation to the BTC assets it holds. according to a mNAV page on BitcoinTreasuries.NET.
The enterprise value, or mNAV in short, is calculated by subtracting the cash value from the market capitalization for all shares of Class A and B plus the debt.
If mNAV drops below 1, then the company’s Bitcoins are valued at a lower price, possibly reflecting concerns over debt, the operating model, or other risk factors.
Related: Saylor pauses Bitcoin buys as Strategy posts $3.9B Q3 gain
“It’s not a substitute for audited financials, but a high-level indicator of how much of the company’s valuation is driven by its BTC treasury vs. other factors,” BitcoinTreasuries.NET’s mNAV page reads.
Metaplanet has $3.5 billion worth of Bitcoin
Metaplanet’s market value (mNAV) fell to $0.99 after the company reported that it held $3.52 billion worth of BTC on its balance sheet. acquisition 5 268 BTC were traded on September 30.
The drop in mNAV came about one year after the Japanese Hotel Company made its first Bitcoin purchase The shares of the company surged on July 22nd, 2024.
The initial Bitcoin purchase pushed Metaplanet mNAV up to a new all-time record of 22,59 on July 24. This level hasn’t been reached since.
Mark Chadwick, Smartkarma equity analyst and a Metaplanet analyst, says that the decline in Metaplanet mNAV is a sign of deterioration for Bitcoin Treasury Trend.
“I still see this crypto treasury stock decline as a popping of a bubble,” Chadwick added that Bitcoin bulls who are looking to invest for the long term may view Metaplanet’s discounted price as an opportunity.
Related: Aurelion Treasury launches Nasdaq’s first Tether Gold-backed reserve
Cointelegraph had contacted Metaplanet to ask for a comment on its mNAV and the potential consequences, but did not receive a reply by publication.
Metaplanet has not been the only Bitcoin-treasury firm to see its stock price fall in recent weeks. Michael Saylor’s Strategy has lost value in its Bitcoin holdings. The company is the largest Bitcoin public holder, with over 640 250 BTC. Common A stock drop about 30% Since July.
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Source: cointelegraph.com
