Net Asset Values (NAVs) in digital asset treasuries (DATs) have collapsed, but this downturn is not as dire as it sounds. According to 10x Research, it can actually be viewed as an opportunity for savvy investors.
“The age of financial magic is ending for Bitcoin treasury companies,” stated 10x Research analysts in a report shared with Cointelegraph on Friday. “They conjured billions in paper wealth by issuing shares far above their real Bitcoin value until the illusion vanished,” they continued.
In this so-called “magic trick,” DATs essentially transferred wealth from retail investors—who overpaid for shares—into actual Bitcoin (BTC) held by the company. Shareholders lost billions, while executives accumulated real BTC, the analysts explained.
### Example: Metaplanet
The researchers used Metaplanet, the fourth-largest Bitcoin treasury firm, as an example. The company effectively transformed a market capitalization of $8 billion, supported by just $1 billion in Bitcoin holdings, into a $3.1 billion market cap backed by $3.3 billion in BTC.
During the hype, retail investors paid two to seven times the actual Bitcoin value when buying these shares. Now, those premiums have vanished, leaving many shareholders underwater, while companies converted that previously inflated capital into real Bitcoin.
### Similar Situation with Strategy
Michael Saylor’s Strategy (MSTR) has experienced a similar “boom-and-bust cycle in its net asset value,” leading to a slowdown in Bitcoin purchases, the report 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.”
### A New Category of Bitcoin Asset Managers Emerges
This normalization of NAVs has created a rare entry point for smart investors. Companies now trading at or below NAV offer pure Bitcoin exposure, with potential upside from future alpha generation and trading profits.
The recent shakeout has also separated genuine operators from mere marketing machines. The firms that survive this transition will be battle-tested, well-capitalized, and equipped to generate consistent returns—ultimately creating a new category of Bitcoin asset managers.
DATs that adapt now are positioned to “define the next bull market,” the researchers concluded. “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.”
### Recent Stock Performance
Strategy stock (MSTR) gained 2% on Friday, ending the trading session at $289.87. However, it has fallen 39% since its all-time high closing price of $473.83 in November 2024, according to Google Finance.
Meanwhile, Metaplanet shares (MTPLF) lost 6.5% on the Tokyo Stock Exchange yesterday, falling to 402 yen ($2.67). The stock has tanked 79% since its mid-June peak of 1,895 yen ($12.58).
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