Bitcoin treasury company Metaplanet valuation drops below BTC holdings
Metaplanet Bitcoin valuation drop below BTC holdings
Japanese Bitcoin treasury company Metaplanet has entered new territory as its enterprise value fell below the worth of its Bitcoin holdings. This Metaplanet Bitcoin valuation drop followed a two-week pause in Bitcoin purchases.
Data shows Metaplanet’s market-to-Bitcoin NAV (mNAV) ratio slipped below 1 for the first time, reaching 0.99. The mNAV measures a firm’s value compared to its BTC holdings. Since mid-June, the ratio has dropped by over seven points. During the same period, Metaplanet’s stock price fell 75%, from 1,895 Japanese yen ($13) to $3.20, according to TradingView.
The decline came shortly after Metaplanet stopped adding to its Bitcoin treasury, with its last acquisition announced on September 30.
Why the mNAV ratio matters
The mNAV ratio shows how the market values a company relative to its Bitcoin assets. It compares enterprise value to Bitcoin NAV, helping investors understand whether the firm trades at a premium or discount to its BTC holdings.
Enterprise value includes market capitalization of Class A and B shares, total debt, and preferred share value, minus cash reserves. When mNAV drops below 1, it signals the market values the company less than its Bitcoin holdings. This can reflect investor worries about debt, management strategy, or market confidence.
According to BitcoinTreasuries.NET, mNAV is not a full financial measure but gives a quick overview of how much of the company’s worth is tied to Bitcoin.
Metaplanet holds over $3.5 billion in Bitcoin
At the time of the Metaplanet Bitcoin valuation drop, the company held 30,823 BTC worth around $3.5 billion. This followed its most recent Bitcoin purchase of 5,268 BTC on September 30.
Metaplanet began buying Bitcoin in July 2024, when its first purchase caused a sharp rise in its stock value. That acquisition pushed the company’s mNAV to an all-time high of 22.59 by late July 2024. Since then, the ratio has steadily declined.
Market reaction to Metaplanet’s mNAV decline
Industry experts are divided on whether the Metaplanet Bitcoin valuation drop signals a failure or a misunderstood market model.
Melanion Capital CEO Jad Comair said the decline reflects market confusion about Bitcoin treasury strategies rather than a failure. “It’s similar to how early investors misunderstood Tesla,” Comair noted. “Once markets understand Bitcoin treasuries’ reflexive value, these discounts will turn into premiums.”
Smartkarma analyst Mark Chadwick, however, suggested the trend shows a cooling of interest in Bitcoin treasury stocks. “It looks like a bubble correction,” he said, though long-term Bitcoin supporters might view the discount as a buying chance.
Metaplanet has not yet commented on its mNAV decline. Other Bitcoin treasury firms, including Michael Saylor’s Strategy, have also faced recent stock losses, with its shares down about 30% since July.
