Twenty One Capital Sits at 43% Discount to Underlying Asset Value
Twenty One Capital, the second-largest listed Bitcoin holder after Strategy (no affiliation), is trading at a significant discount to its underlying asset value. The company's August 11 quarterly filing shows that it holds 43,514 Bitcoin, valued at $2.55 billion or approximately $58,600 per coin.
However, Twenty One Capital's stock market value sits well below the value of those holdings, with an acquisition cost of around $3.69 billion or roughly $84,900 per coin. This means that the company's Bitcoin holding is about $1.14 billion below its purchase price.
The discount can be attributed to the fact that shares in a bitcoin treasury company do not directly represent ownership of the underlying asset. Instead, they are influenced by market demand for the stock and corporate obligations, creating either a premium or a discount to asset value.
The mNAV (market net asset value) is a key measure to understand this discount. It divides the company's market capitalization by the market value of its Bitcoin holdings. An mNAV of 1.0 indicates parity with the Bitcoin value, while a reading above 1.0 signals a premium and below 1.0 a discount.