Bears Winning as 'Meaningful' Discount Emerges for 4 Bitcoin Treasury Firms: TD

Core Insights - Some Bitcoin treasury firms are experiencing a decline in share prices, trading at significant discounts compared to their crypto holdings, with four firms noted for their underperformance [1][3] - These firms are attempting to replicate the successful strategy of the largest corporate Bitcoin holder, focusing on the amount of Bitcoin owned per share [2] Group 1: Performance of Bitcoin Treasury Firms - Among 13 Bitcoin-buying firms tracked, four are trading at discounts: Semler Scientific (-4%), Sequans (-25%), DDC Enterprise (-18%), and Bitcoin Treasury Corp (-18%) [1] - Collectively, these firms hold $1.15 billion worth of Bitcoin, but their stock price fluctuations have limited their ability to issue shares for further Bitcoin purchases [3] Group 2: Market Dynamics and Strategy - The largest corporate holder of Bitcoin, referred to as Strategy, has maintained a premium and has never fallen below a critical market-to-net-asset value (mNAV) threshold, currently at 1.29x [4] - Strategy's premium peaked at 3.1x in November, but has since decreased, making it harder for them to increase Bitcoin per share through common share issuance [5] Group 3: Market Sentiment and Future Outlook - Bitcoin treasury firms are noted for their volatility, with some expected to outperform Bitcoin itself, while others may face acquisition [6] - A notable incident involved Kindly MD, whose stock plummeted over 54% after its CEO's comments, highlighting the sensitivity of these firms to market sentiment [8]