ETHZilla has just sold $40 million worth of Ethereum to fund stock buybacks-because apparently, that’s what you do when you’re staring down a 30% NAV discount. Meanwhile, Japan’s Metaplanet is trading below its Bitcoin reserves like it’s no big deal, proving that the crypto treasury sector is officially in panic mode.
Analysts are now warning that crypto treasury firms are facing three not-so-great options, and if market pressures keep up, they’re probably about to make things worse for everyone. 🙄
Who Needs Valuation Anyway?
As if things weren’t already bad enough, the Bitcoin treasury model is under pressure. Metaplanet’s modified Net Asset Value (mNAV) recently dipped to a shocking 0.99, despite Bitcoin revenue growing by a whopping 115.7% in Q3. Whoops. 😬
It bounced back to 1.03, but the fact that the company’s market value dipped below its direct Bitcoin holdings is… well, not a good sign.
Since June, Metaplanet shares have plummeted around 70%. The days of that sweet corporate Bitcoin treasury premium are long gone, and this mNAV dip is basically saying, “Hey, maybe people don’t believe in Bitcoin-focused business models anymore.” Oops.
In case you’re wondering how bad things are, Fidelity Digital Assets found that non-mining public companies now hold over 700,000 BTC and 3 million ETH. That’s A LOT of crypto tied up in a very volatile market. No biggie, right? 🙄
Corporate Buying? Yeah, That’s Just… Stopped
And here’s where it gets real fun: there’s a huge lack of corporate Bitcoin purchases after major market drawdowns. David Duong, Head of Institutional Research at Coinbase, points out that Bitcoin buying by treasury companies is at year-to-date lows. Even when the market bounces back, nothing. Crickets.
Where are the DATs? BTC digital asset treasury companies (DATs) have largely ghosted the post-Oct 10 drawdown and are yet to re-engage. Over the last two weeks, BTC buying by DATs fell to near year-to-date lows and has not meaningfully recovered, even on green days. A short 🧵👇…
– David Duong🛡️ (@Dav1dDuong) October 25, 2025
This is like when the popular kids stop buying the latest iPhones-things start to fall apart. Without those institutional buys, the market gets a little… wobbly.
Oh, and speaking of buying, Ethereum’s only getting attention from one big player: ETHZilla. That’s right, the company just sold $40 million in Ethereum to fund stock buybacks. Because that’s what you do when your stock is on a 30% discount sale. 🙄
0/ ETHZilla today announced share buyback of approximately $40 million as ETHZ trades at a significant discount to NAV. Since Friday, October 24, we have repurchased ~600,000 shares for roughly $12M under the $250M buyback authorization, and plan to continue to repurchase our…
– ETHZilla (@ETHZilla_ETHZ) October 27, 2025
This move? It’s meant to boost share value, but it’s also a big red flag that crypto asset accumulation strategies might be a thing of the past.
The “Three Doors of Doom” for Treasury Firms
So, with all this chaos, Charles Edwards from Capriole Investments has laid out the three options for treasury firms trading below mNAV. Spoiler alert: none of them are good.
“The masses of treasury companies trading below mNAV have only 3 options: 1. Sell underlying = bad for coin + bad for business 2. Get acquired 3. Grow leverage to increase ‘yield’ and stand out,” Edwards outlined.
Option one: sell crypto reserves. This is like setting your house on fire to keep warm. It’s bad for the business AND bad for the coin.
Option two: get acquired. It’s like asking for an exit strategy, but it also means fewer independent players and more concentration of power. Fun times.
And option three: leverage up. Because when in doubt, add more risk. Edwards warns this will likely trigger “massive leverage growth,” which is just what we need in the middle of a crypto crisis. 🙄
In the next few weeks, treasury firms will have to make some critical choices. Let’s hope they don’t drag us all into a massive, sector-wide collapse.
Metaplanet’s general meeting on December 22 could give us all a preview of how they plan to survive under the pressure of these mNAV woes. Stay tuned. 🍿
Read More
- BTC PREDICTION. BTC cryptocurrency
- XRP PREDICTION. XRP cryptocurrency
- FLR PREDICTION. FLR cryptocurrency
- GBP CAD PREDICTION
- NEXO PREDICTION. NEXO cryptocurrency
- Gold Rate Forecast
- Brent Oil Forecast
- LSETH PREDICTION. LSETH cryptocurrency
- BNB PREDICTION. BNB cryptocurrency
- Grayscale’s Big Boss Barry Silbert Returns With Big Plans and Even Bigger Drama
2025-10-28 11:08