According to the latest report by K33 Research, a quarter of publicly traded Bitcoin 
$91,081 treasury companies are currently trading below the market value of their Bitcoin reserves. This situation undermines these companies’ ability to raise capital through new share issues for Bitcoin purchases, indicating a shift towards more organic demand sources rather than institutional purchases. The data reveals that small-scale companies are struggling the most, whereas larger players continue to trade at a premium.
The Steep Decline in Smaller Companies
Vetle Lunde, Head of K33 Research, emphasized that a market valuation below net asset value makes share issuance dilutive. Raising funds through undervalued shares results in greater ownership loss compared to the Bitcoin acquired. This mechanism particularly corners small companies attempting to grow through capital increase.
The most significant drop was witnessed in NAKA. The company, a merger vehicle involving KindlyMD and Nakamoto Holdings, lost 96% of its value from its peak. Its mNAV multiplier fell from 75 to 0.7. Tether-backed Twenty One, Semler Scientific, and The Smarter Web Company are also trading below their mNAV value of 1. The overall average mNAV, which stood at 3.76 in April, has now fallen to 2.8.
Strategy’s Bitcoin Purchases Slow Down
Michael Saylor’s led Strategy, the sector’s largest player, saw its premium decrease to 1.26, despite standing out with its Bitcoin treasury model. This ratio, the lowest since March 2024, limits the company’s Bitcoin purchases through new share sales. This contraction also affected the company’s weekly Bitcoin purchases, causing a decline in demand.
According to K33 data, Bitcoin treasury companies’ daily purchase average fell to 1,428 BTC in September. This figure is the lowest seen since May. Lunde noted that this process is rational because companies that solely aim to accumulate Bitcoin should not trade at a premium due to additional costs.
The report indicates a decrease in buying power from institutional companies as total publicly held treasury reserves surpass 1 million BTC. Instead, ETFs and individual investors have emerged as the market’s new driving force.
