Bitcoin Treasury Companies Now Trading Below
Firms holding significant bitcoin reserves—once celebrated for their aggressive moves into crypto—are currently valued by the market at less than the worth of their
Semler Scientific (SMLR), which began its bitcoin treasury initiative in mid-2024, is a prime example of this shift. Despite accumulating more than 5,000 BTC, its stock price has hovered around $24, giving it an mNAV of just 0.80x. The situation is even more severe for
This trend is seen throughout the industry. Data from BitcoinQuant indicates that companies such as Capital B (ACPB), The Smarter Web Company (SWC), and H100 Group (GS9) are trading at mNAV ratios as low as 0.72x. During the summer rally, these firms were valued at much higher premiums, as highlighted by Coindesk.
The downturn marks a turning point for the bitcoin treasury approach. First popularized by MicroStrategy’s Michael Saylor, the strategy involved raising funds, converting them to BTC, and holding long-term. Now, more than 160 publicly traded companies have adopted this model, collectively holding close to 1 million BTC—roughly 4% of all bitcoin in circulation, according to
"Premium valuations may not last based solely on narratives and BTC reserves," a Yahoo Finance analysis observed. The next chapter for these companies will likely involve finding ways to generate income from their bitcoin, much like how REITs transitioned from simply owning property to producing revenue. Possible strategies include lending backed by BTC, building Lightning Network infrastructure, or creating innovative financial products. However, these paths come with risks such as counterparty issues and operational challenges, Yahoo Finance noted.
The difficulties facing the sector illustrate the struggle between speculative hype and solid financial performance. While some companies may shift toward yield-focused strategies, others could face further dilution and lower mNAV ratios. For investors, the current discounts suggest a realignment of expectations, moving away from hype and toward a focus on actual value creation.