Metaplanet, a Japanese firm focused on Bitcoin, suspended its purchases for two weeks, which coincided with its valuation dropping below the value of its Bitcoin holdings.

On Tuesday, Metaplanet’s market to Bitcoin NAV (mNAV) fell below 1, hitting 0.99 for the first time. The company’s stock value has plummeted by 75% since mid-June, marking a drop from ¥1,895 ($13) per share to just $3.20.

This decline followed the company’s halt in Bitcoin buying, with the last acquisition on September 30.

Significance of mNAV

mNAV is a crucial measure that compares a company’s market value to its Bitcoin assets. A ratio below 1 indicates the company trades at a discount relative to its Bitcoin holdings, which reflects investor concerns.

Currently, Metaplanet holds 30,823 BTC, valued at approximately $3.5 billion, following a recent purchase of 5,268 BTC on September 30. In July 2024, the company made its first Bitcoin acquisition, causing a significant spike in their stock valuation.

Reactions to the Decline

Market analysts have varying opinions on this situation. Jad Comair, CEO of Melanion Capital, expressed that Metaplanet’s valuation challenges stem from a general misunderstanding of Bitcoin treasury strategies: “It reveals a market that still misunderstands Bitcoin treasury models.”

Meanwhile, Smartkarma’s Mark Chadwick pointed out the ongoing decline as a potential bubble burst, suggesting that long-term investors may see it as an opportunity.

Cointelegraph has sought comment from Metaplanet regarding these developments but has not received a response by the time of this publication.