Bitcoin treasury firms face growing pressure on net asset value…40% face crisis

As the share prices of companies holding Bitcoin (BTC) have weakened, many of them are being valued at a market capitalization below the Bitcoin they hold.

On the 3rd (Korean time), crypto asset (cryptocurrency) specialist media Cryptopolitan, citing BitcoinTreasuries, a data analysis site for Bitcoin-holding companies, reported that about 40% of the top 100 publicly listed Bitcoin-holding companies are recording a market capitalization lower than the net asset value (NAV) of the Bitcoin they hold.

Bitcoin treasury companies (DAT) whose market capitalization is lower than their Bitcoin NAV include Pioneers Strategy, H100, Vanadi Coffee, and OrangeBTC.

Cryptopolitan said, "The difficult situation faced by Bitcoin-holding companies could worsen depending on whether Bitcoin prices fall further, and some companies could be considered targets for mergers and acquisitions (M&A)."

There are also voices critical of Bitcoin-holding companies. One crypto asset investor said, "(DAT are) 'pump-and-dump' style 'rug pulls' that inflate stock value and then remove it," adding, "These companies do not provide any returns to investors; they are scammers who inflate stock value by buying Bitcoin and then exit. Companies with the name 'DAT' should be avoided."