A new report by 10x Research shows that the net asset values (NAVs) of Bitcoin treasury companies have suffered a massive crash. The company implied that the drop wiped billions of dollars in paper wealth. This also gives new chances to seasoned investors aiming to undervalue exposure to Bitcoin-related assets.
According to researchers at 10x Research, during the last bull run of Bitcoin, multiple digital asset treasury (DAT) companies sold shares at values that were substantially greater than their actual holdings of . This enabled them to engineer what they termed as financial magic, moving capital of retail investors paying excessive prices into actual Bitcoin reserves of the companies.
The fourth-largest Bitcoin treasury company, , was used as a case study. The company used to have a market capitalization of $8 billion backed by $1 billion of Bitcoin. Following the correction, its market value has been corrected to around $3.1 billion with the help of $3.3 billion in Bitcoin reserves, a clear indication of a more balanced value.