If a company is selling for half the value of the crypto in its treasury, there’s a story behind it 🔍
On Thursday, the SEC declared effective the filing of a company created solely to hold XRP. Headlines read: “SEC Approves.”
But look at the document—there’s no such word 👇
In the company’s own description, it states: The SEC does not endorse the transaction, the company’s strategy, or XRP itself 📄
The effectiveness of the registration statement simply means the paperwork is complete. It’s not approval—it’s permission to enter the queue.
Now the real part 🕵️
These companies operated on one formula: shares would be priced higher than the crypto held in treasury. When that happened, the company would issue shares to buy more crypto, increasing the crypto backing each share. The cycle turned 🔁
The metric is called mNAV. When it’s above 1, the cycle spins; below 1, it reverses.
And by 2026, that ratio had fallen below 1 for most companies 📉
At Japan’s flagship treasury company, the ratio was above 3 in July 2025—this July, it dropped to 0.57. That means the market is paying just 57 cents for every dollar of Bitcoin held in treasury.
What comes next sounds familiar 👇
📌 The pioneer of this model sold its Bitcoin from treasury and converted to cash
📌 Another sold nearly half its Bitcoin holdings to pay down debt and repurchase shares
📌 On August 4, a mining company was granted authority to convert its treasury into cash to buy back its own shares
In other words, companies are no longer accumulating crypto—they’re selling crypto to buy back their own shares 🤔
There’s another layer 🧾
The company seeking to go public bought its XRP last October for approximately $947 million. Its current value is significantly below that amount—it was already at a loss before going public.
And the real deadline on the calendar isn’t September 30 🗓️
It’s September 28. Until that date, shareholders of the shell company merging with it can demand their money back. Even if the vote passes “yes,” this is the day that determines how much cash remains in the treasury.
Detective note 🧭
This model made sense in 2020, because institutional investors had no other way to access crypto. Now, spot ETFs exist.
The difference: an ETF gives you only crypto. A treasury company gives you crypto—and a company. The latter comes with an extra cost, and right now, the market doesn’t want to pay it.
Do you think this model is closing down—or just undergoing a purge? 👇
This content is for informational purposes only and does not constitute investment advice or investment counseling.
