mNAV of Metaplanet Drops Below 1 as Bitcoin Holdings Outweigh Market Value
Metaplanet, a Japanese Bitcoin treasury firm, saw its market to Bitcoin NAV (mNAV) drop below 1 for the first time in history. The mNAV compares a company’s enterprise value – market capitalization plus debt minus cash – to its Bitcoin holdings. On Tuesday, it hit 0.99.
According to TradingView, Metaplanet stock (3350) recently lost 75% of its value, falling from a peak of 1,895 JPY (~$13) per share to $3.20. The company also halted Bitcoin buys for two weeks following its last purchase of 5,268 BTC on September 30.
Understanding mNAV
mNAV differs from standard net asset value (NAV). It measures the ratio of enterprise value to a company’s Bitcoin holdings. This metric helps investors gauge how much the market values a company relative to its Bitcoin reserves.
Enterprise Value (EV) here is calculated as:
EV = Market Cap of Shares + Total Debt + Perpetual Preferred Shares – Cash Balance
When mNAV dips below 1, it implies the company is valued less than its Bitcoin holdings, signaling caution due to debt, operational concerns, or market skepticism of the Bitcoin treasury model.
BitcoinTreasuries.net explains that:
“mNAV measures the extent to which the NAV of a public company is driven by its Bitcoin treasury versus other sources of value.”
Also Read : BNB Becomes Third-Largest Cryptocurrency by Market Capitalization
Metaplanet’s Historical Bitcoin Holdings
Metaplanet currently holds 30,823 BTC (~$3.5B), ranking it among the largest corporate Bitcoin holders worldwide. Its mNAV reached an all-time high of 22.59 in July 2024 shortly after its first Bitcoin purchase, reflecting strong market enthusiasm.
The recent decline indicates a cooling in the crypto treasury trend, a phenomenon observed across the sector.
An Opportunity or a Crisis?
Industry experts hold differing perspectives:
- Jad Comair, CEO of Melanion Capital, believes the discount arises from market misunderstanding, similar to what Tesla experienced. He predicts that once the market grasps reflexivity in Bitcoin treasuries, the discount could turn into a long-term premium.
- Mark Chadwick, equity analyst at Smartkarma, views the mNAV drop as a potential bubble cooling. Long-term Bitcoin bulls may see it as a buying opportunity.
Metaplanet is not alone; Michael Saylor’s Strategy company, holding 640,250 BTC, and other major Bitcoin treasury companies have also seen declines in their stock prices recently.
