Undervalued Bitcoin-Holding Firms Present New Opportunity, Says 10X Research

Companies that strategically hold Bitcoin and Ethereum are now trading at a discount to their net asset value (NAV), according to a new analysis from 10X Research. The research firm suggests this undervaluation could present a fresh opportunity for investors, drawing a parallel to the Grayscale Bitcoin Trust (GBTC) discount seen in late 2022.

Understanding the NAV Discount

10X Research compared the current situation to December 2022, when GBTC traded at a 47% discount to its NAV. At that time, investors could effectively buy Bitcoin at under $10,000 per coin through the trust, a discount that vanished after its conversion into a spot Bitcoin ETF. The firm noted that while many investors assumed such products would always trade at a premium to their underlying BTC holdings, they actually behave more like options. Their share prices rise above NAV during periods of high volatility but fall below it as volatility subsides.

A Shift in Market Dynamics

The research firm highlighted that it had warned in August 2025 that these companies’ stock prices could fall below the value of their actual assets. That scenario has now materialized. However, 10X Research suggested that this discount is now transforming into a potential investment opportunity, rather than a warning sign. The key question for investors is whether the current discount will close as quickly as the GBTC discount did, or if it will persist for a longer period.

Implications for Investors

For investors, the situation offers a chance to gain exposure to Bitcoin and Ethereum at a discount through publicly traded equities. However, it also carries risks, including the possibility that the discount could widen further if market volatility continues to decline. The analysis underscores the importance of understanding the structural differences between direct crypto holdings and equity-based exposure.

Conclusion

The current NAV discount on Bitcoin- and Ethereum-holding companies, as identified by 10X Research, echoes a historical pattern that previously led to significant gains for investors who recognized the opportunity early. While the situation is not identical, the core dynamic—buying assets below their intrinsic value—remains a compelling thesis for those willing to navigate the volatility.

FAQs

Q1: What does it mean when a company trades at a discount to NAV?
A discount to NAV means the company’s stock price is lower than the total value of its assets (like Bitcoin or Ethereum) divided by the number of shares. Investors can buy the assets indirectly at a cheaper price through the stock.

Q2: Why did the GBTC discount disappear in 2022?
The GBTC discount closed after the trust converted into a spot Bitcoin ETF, which allowed for easier creation and redemption of shares, aligning the market price more closely with the underlying Bitcoin value.

Q3: Is this a guaranteed investment opportunity?
No. While the NAV discount presents a potential opportunity, it carries risks, including the possibility of the discount widening further or the underlying crypto assets declining in value. Past performance is not indicative of future results.