This overview examines the current state of stocks in companies holding Bitcoin, including MARA and SOS, which trade below their market value.
MARA Stock and Other Bitcoin Treasury Firms
Some public companies hold Bitcoin as part of their balance sheets. Traders often compare the value of their stock to the value of the Bitcoin held. This comparison is tracked using a metric called mNAV, which shows their market value is lower than their Bitcoin value. One clear example is MARA Holdings, a well-known U.S. Bitcoin mining firm, whose shares trade at about 1× mNAV. Another example is SOS Limited, a China-based Bitcoin mining firm, which trades at just 0.16× mNAV.
Why mNAV Matters for Bitcoin
A stock trading below its Bitcoin value suggests extra risk perceived by investors. This could relate to the company’s debts, costs, or doubts about its long-term viability. If conditions worsen, firms with discounted mNAVs may need to sell some Bitcoin to cover loans or maintain operations, creating additional market supply.
Price Differences: Premium vs Discount Companies
Not all companies are in discount territory. MicroStrategy, the largest public Bitcoin holder, trades at about 1.6× mNAV, indicating that the market values the company at 60% more than the Bitcoin it holds. This highlights the contrast between firms with declining stocks and those with investor confidence. However, even strong companies may face declines if Bitcoin prices fall.
The market for Bitcoin treasury stocks shows significant valuation differences, which may signal further movements in the Bitcoin market. mNAV levels could indicate the risk of forced selling, negatively impacting Bitcoin prices.
