The landscape of Bitcoin-holding corporations is undergoing a significant shift, marked by a dramatic decline in market premiums and a subsequent reduction in their capacity to acquire more of the cryptocurrency. This development signals a potential change in the primary drivers of Bitcoin demand.
A recent analysis by K33 reveals that approximately one in four publicly traded companies possessing Bitcoin is now valued below the worth of their own BTC holdings. This phenomenon occurs when companies issue new shares at a discount relative to their Net Asset Value (NAV). Such dilutive practices effectively mean these firms are offering ownership stakes that are worth more than the Bitcoin they are raising funds to purchase, diminishing the incentive and financial capability for continued aggressive accumulation of Bitcoin. Vetle Lunde, Head of Research at K33, highlights that this disparity between market capitalization and asset reserves “significantly curtails” the demand from entities that have historically been consistent Bitcoin buyers.
The decline has been particularly pronounced for NAKA, a combination of KindlyMD and Nakamoto Holdings. Its market value has plummeted by 96% from its peak, with its ratio of market value to NAV collapsing from 75 to a mere 0.7. Other firms, including Twenty One (backed by Tether), Semler Scientific, and The Smarter Web Company, are also trading below the value of their Bitcoin reserves, with their mNAV ratios falling below 1. While the average mNAV ratio for the sector remains higher due to larger entities, a growing number of smaller companies are now seeing their valuations trail their Bitcoin holdings.
Even prominent Bitcoin holders like MicroStrategy (MSTR) have experienced this trend. MicroStrategy’s premium relative to its Bitcoin reserves has contracted to 1.26, its lowest point since March 2024. Consequently, the company has scaled back its weekly Bitcoin acquisitions, thereby reducing a crucial channel of market absorption that has been active for the past year. These diminishing premiums are viewed as a rational market response, as companies holding Bitcoin primarily function as accumulation vehicles and face additional costs.
The trend suggests a redirection of demand away from corporate balance sheets. In September, companies holding Bitcoin acquired an average of only 1,428 BTC per day, marking the slowest pace since May. With public entities now holding over one million BTC, the marginal demand in the market appears to be shifting. Future demand for Bitcoin may increasingly rely on flows into Bitcoin Exchange-Traded Funds (ETFs) and a potential resurgence of retail investor participation, rather than continued corporate acquisitions.
Former Wall Street analyst turned crypto journalist, Marcus brings a decade of expertise in trading strategies, risk management, and quantitative research. He writes clear, actionable guides on technical indicators, portfolio diversification, and emerging DeFi projects.