Bitcoin Treasury Valuations Under Siege: Smaller Players Bear the Brunt!

Bitcoin treasury companies face serious valuation pressures as market conditions tighten—smaller firms hit hardest in the latest crypto reckoning.

The Great Squeeze

Valuations crumble under weight of regulatory scrutiny and volatile BTC prices. MicroStrategy's massive holdings provide some buffer, but smaller players lack that luxury—watching their treasury values evaporate faster than meme coin hype.

Survival of the Biggest

Institutional adoption continues climbing while smaller treasury operations scramble for liquidity. They're forced to sell at precisely the wrong time—classic crypto timing that would make any traditional finance analyst smirk into their spreadsheet.

Market Darwinism plays out in real-time: adapt or get rekt. The irony? Traditional corporations still can't decide if Bitcoin belongs on balance sheets while crypto-native companies drown in their own treasury strategies.

$116,333 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.

ContentsThe Steep Decline in Smaller CompaniesStrategy’s bitcoin Purchases Slow Down

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.

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