Metaplanet Overlooked Bitcoin Purchases as mNAV Falls Below 1

Metaplanet, a Bitcoin treasury firm based in Japan, has seen its enterprise value dip below that of its Bitcoin holdings, placing it in uncharted waters as one of the largest public Bitcoin holders globally.

The market to Bitcoin NAV (mNAV) of Metaplanet—a ratio that compares the company’s value to its BTC holdings—fell below 1 on Tuesday, hitting 0.99 for the first time, as per official data.

This metric has plummeted by over seven points since mid-June, with Metaplanet’s stock (3350) losing 75% of its value, dropping from a peak of 1,895 Japanese yen ($13) per share to $3.20 on Tuesday, per TradingView.

Metaplanet’s mNAV sank below 1 after the company suspended Bitcoin purchases for the last two weeks, with its last BTC acquisition reported on September 30.

What makes mNAV significant?

Unlike traditional net asset value (NAV), mNAV serves as a ratio between enterprise value and Bitcoin NAV, helping investors assess how the market evaluates the company against its underlying BTC assets, according to BitcoinTreasuries.NET’s mNAV page.

In the mNAV calculation, enterprise value encompasses the market capitalization of all Class A and Class B shares, total debt, and the notional value of perpetual preferred shares, minus the company’s cash reserves.

An mNAV below 1 indicates that the company is trading at a discount to its Bitcoin holdings, potentially signaling market concerns regarding debt, its operational model, or other inherent risks.

Related: Saylor pauses Bitcoin purchases as Strategy reports $3.9B Q3 profit

“While it’s not a replacement for audited financial statements, it provides a high-level perspective on how much of the company’s valuation is influenced by its BTC holdings compared to other elements,” reads the mNAV page on BitcoinTreasuries.NET.

Metaplanet holds $3.5 billion in Bitcoin

Metaplanet’s mNAV dropped to 0.99 as the company maintained 30,823 BTC ($3.5 billion) on its balance sheet, following its recent acquisition of 5,268 BTC on September 30.

The decline in mNAV occurred approximately a year after the hotel company made its inaugural Bitcoin purchase on July 22, 2024, which spurred an immediate surge in its share price.

This initial Bitcoin acquisition propelled Metaplanet’s mNAV to an unprecedented high of 22.59 by July 24, a milestone that has yet to be reached again.

The decline in Metaplanet’s mNAV underscores a continued cooling trend in the Bitcoin treasury landscape, according to equity analyst Mark Chadwick from Smartkarma.

“I perceive this crypto treasury stock decline as indicative of a bubble burst,” Chadwick remarked, noting that long-term Bitcoin enthusiasts might view Metaplanet’s discount as a buy opportunity.

Related: Aurelion Treasury launches Nasdaq’s inaugural Tether Gold-backed reserve

Cointelegraph reached out to Metaplanet for comments on its mNAV decline and its possible repercussions but had not received feedback by the time of publication.

Metaplanet isn’t alone in experiencing a stock downturn among Bitcoin treasury firms. Michael Saylor’s Strategy, which holds the most Bitcoin publicly with 640,250 BTC, has seen its Common A stock value drop approximately 30% since July.