The market values of Bitcoin 
$78,815-focused treasury companies have dipped below their BTC asset portfolios. Since mid-2024, a rapidly declining investment appetite and falling share prices have pushed these companies below an mNAV ratio of 1. Companies like Semler Scientific (SMLR), KindlyMD (NAKA), and Strive (ASST), which operate using a pure Bitcoin treasury model, are trading at deep discounts compared to their asset values.
Bitcoin Portfolios Fall Short as Shares Plunge
Semler Scientific formed a portfolio exceeding 5,000 BTC since launching its Bitcoin strategy in mid-2024. However, the company’s share price remains stagnant at $24, the level it was at when they began Bitcoin acquisitions, and the market value equates to only 80% of its assets. Strive, preparing for acquisition, faces a more significant decline. The company’s market value has dropped by 90% in the past month, falling to half of its 5,885 BTC holdings. Likewise, KindlyMD, which holds 5,765 BTC, trades at a 0.5x mNAV ratio, with a market value of $300 million against $631 million in Bitcoin.
BitcoinQuant data reveals that other treasury companies like Capital B, Smarter Web Company, H100 Group, and Metaplanet also trade below their net asset value.
New Strategies Emerge to Restore Confidence
Experts believe the severe value losses in Bitcoin treasury companies’ shares stem from investor psychology and note that recovery is contingent on Bitcoin’s price. Companies might resort to buyback programs to bridge this discount. Empery Digital’s $100 million credit-financed share buyback failed to bolster share prices, as the company’s value has decreased by 60% since the year began. Similarly, Sequans Communications’ 10% ADS buyback did not enhance stock performance.
Some companies are attempting to generate additional income by utilizing a small portion of their Bitcoin assets in low-yield trading strategies. This approach proved successful for Michael Saylor’s Strategy (MSTR) during a similar downturn in 2022, and the company currently trades at approximately 1.39 times its BTC holdings, though the premium is rapidly declining.
