10X Research diagnosed that the net asset value (NAV) premium of companies strategically hoarding Bitcoin and Ethereum has turned negative, leading to undervaluation. 10X Research explained, "In December 2022, Grayscale Bitcoin Trust (GBTC) traded 47% below its NAV. This was effectively buying BTC for under $10,000 per coin, and the discount disappeared when it converted to an ETF. Investors believed that the stock price of such products would always trade higher than the value of the BTC held, but in reality, it behaved like an options product. When volatility is high, the stock price rises above the net assets, but when volatility decreases, it falls below the net assets." They continued, "We warned that by August 2025, the stock prices of these companies could fall below the value of their actual held assets, and such losses indeed occurred. However, now this discount is actually turning into an investment opportunity."
