A downturn in the cryptocurrency market has resulted in a significant drop in share prices for companies that primarily hold Bitcoin as an investment asset. These firms, known as Bitcoin treasury companies, now hold their portfolios below their current value, with several experiencing mNAV ratios significantly below 1. Companies like Semler Scientific (SMLR), KindlyMD (NAKA), and Strive (ASST) have seen their share values plummet despite holding substantial BTC holdings. Their market values are currently only reflecting a fraction of the actual Bitcoin they possess. While companies like Semler Scientific initially amassed over 5,000 BTC since deploying its Bitcoin strategy in mid-2024, the company’s shares remain stagnant at $24, with their market value falling to just 80% of their assets. Strive’s situation is even more dire, facing a 90% decline in market value in the past month, down to half its 5,885 BTC holdings. Similarly, KindlyMD, holding 5,765 BTC, trades at a meager 0.5x mNAV ratio, with a market capitalization of just $300 million against its Bitcoin reserves of $631 million. Data from BitcoinQuant reveals that other Bitcoin-focused companies like Capital B, Smarter Web Company, H100 Group, and Metaplanet also trade below their net asset value. This decline in share value raises concerns about the future of these companies. Experts point to investor psychology as a major factor behind this downturn and suggest recovery hinges on Bitcoin’s price movement. Some companies are considering buyback programs to bridge the discount gap, but so far those efforts have not had much impact. Empery Digital’s $100 million share buyback failed to boost its stock value, while Sequans Communications’ 10% ADS buyback did not yield any positive results. In a bid to restore investor confidence, some firms are utilizing a small percentage of their Bitcoin holdings for low-yield trading strategies. This approach proved successful during a similar market downturn in 2022 for companies like Michael Saylor’s Strategy (MSTR), and the company currently trades at a price roughly 1.39 times its BTC holdings, though this premium is declining rapidly. The situation underscores the inherent volatility of Bitcoin investments and their impact on company valuations.