Bitcoin News Today: Bitcoin Firms Mirror REITs, Pursue Yield as Premiums Fade

Bitcoin Treasury Firms Trade Below BTC Holdings as Market Sentiment Falters

Bitcoin treasury companies—once lauded for their bold bets on the cryptocurrency—are now trading at valuations that undervalue their actual bitcoin holdings, according to recent data. The decline in investor confidence has pushed many firms below a 1x multiple to their net asset value (mNAV), a metric that compares market capitalization to the value of their BTC reserves. This shift reflects broader market skepticism and a correction from the summer bull run, according to a Coindesk report.

Semler Scientific (SMLR), which launched its bitcoin treasury strategy in mid-2024, exemplifies this trend. Despite amassing over 5,000 BTC, the company's share price remains near its initial level of $24, resulting in an mNAV of 0.80x. The situation worsens for Strive (ASST), which recently acquired Semler. Strive's stock has plummeted 90% since its SPAC merger, leaving its valuation at just half the $631 million value of its 5,885 BTC holdings, the Coindesk report found. Similarly, KindlyMD (NAKA), the 19th-largest publicly traded BTC holder with 5,765 coins, trades at a 50% discount to its BTC holdings amid $250 million in convertible debt, according to the Coindesk report.

The pattern extends across the sector. BitcoinQuant data shows firms like Capital B (ACPB), The Smarter Web Company (SWC), and H100 Group (GS9) trading at mNAV multiples as low as 0.72x. These companies had previously traded at significant premiums during the summer market rally, the Coindesk report noted.

The collapse underscores a maturation of the bitcoin treasury model. Initially pioneered by MicroStrategy's Michael Saylor, the strategy involved raising capital, converting it to BTC, and holding it indefinitely. Over 160 publicly listed companies have since adopted the approach, collectively controlling nearly 1 million BTC—about 4% of the circulating supply, according to Yahoo Finance. However, the model's reliance on speculative premiums has proven unsustainable.

"Premium multiples may not endure on storytelling and BTC holdings alone," noted a Yahoo Finance analysis. The next phase for these firms will likely hinge on generating yield from their BTC reserves, akin to how REITs evolved from landlords into income-generating entities. Potential avenues include BTC-backed lending, Lightning Network infrastructure, or novel financial products. Yet, these strategies carry risks such as counterparty exposure and operational complexity, the Yahoo Finance piece added.

The sector's challenges highlight the tension between speculative narratives and financial fundamentals. While some firms may pivot to yield generation, others risk further dilution and compressed mNAV multiples. For investors, the current discount reflects a recalibration of expectations, signaling a shift from hype-driven valuations to a focus on tangible value creation.