Net Asset Values (NAVs) in digital asset treasuries (DATs) have plummeted, but this situation may present an opportunity for astute investors, as noted by 10x Research.
“The era of financial illusions is coming to a close for Bitcoin treasury companies,” remarked analysts at 10x Research in a report released to Cointelegraph on Friday.
“They generated billions in paper wealth by issuing shares at prices significantly higher than their true Bitcoin value — until the illusion dissipated,” they stated.
In this “illusion,” DATs effectively extracted wealth from retail investors who overpaid for shares, converting it into actual Bitcoin (BTC) for the firm. Shareholders faced losses in the billions while executives amassed genuine BTC, they highlighted.
The researchers cited Metaplanet, the fourth-largest Bitcoin treasury firm, as a case study, demonstrating how the company shrank its market cap from $8 billion, based on $1 billion in Bitcoin holdings, to a $3.1 billion valuation backed by $3.3 billion in BTC.
Similar Circumstances in Strategy
During the hype, retail investors paid two to seven times the actual Bitcoin value for shares. Now, those premiums have dissipated, leaving many shareholders with losses while companies converted that inflated capital into real Bitcoin.
Related: Bitcoin and DATs set for significant growth in 2026: LONGITUDE
Michael Saylor’s Strategy saw a comparable “boom-and-bust phase in its net asset value,” leading to a decrease in Bitcoin acquisitions, they observed.
“With NAVs now fully reverting, retail investors have lost billions—and many may lack the conviction to continue investing.”
A New Breed of Bitcoin Asset Managers
The stabilization of NAV presents a unique entry point for discerning investors. Companies now trading at or below NAV provide direct Bitcoin exposure along with potential future returns and benefits from trading profits.
This shakeup has differentiated genuine operators from mere marketing entities. Firms that endure this transition will emerge as resilient, well-funded, and capable of providing consistent returns, establishing a new breed of Bitcoin asset managers.
DATs that adapt promptly will “shape the next bull market,” the researchers concluded:
“Bitcoin will continue to advance, and Digital Asset Treasury firms with robust capital foundations and skilled management teams may still produce significant returns.”
Strategy and Metaplanet Stock Decline
On Friday, Strategy stock (MSTR) rose by 2%, closing the trading session at $289.87. However, it has decreased by 39% since its peak closing price of $473.83 in November 2024, according to Google Finance.
Metaplanet shares (MTPLF) fell by 6.5% on the Tokyo Stock Exchange yesterday, dropping to 402 yen ($2.67) and have plummeted by 79% since their mid-June high of 1,895 yen ($12.58).
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