The golden age has come to an end! The "Bitcoin bank" is facing a cleaning wave, with both the stock prices of giants and premiums declining.

Once a beacon of success, Bitcoin asset management companies are now facing unprecedented stress tests. From NAKA's stock price plummeting 35% in just 10 days, to Strategy being removed from the S&P 500 index, and mNAV premiums nearly disappearing, this industry, hailed as the “Bitcoin bank,” is transitioning from its golden era into a harsh phase of cleansing and restructuring.

NAKA: Stress Test of High-Leverage Market

The price of NAKA has recently plummeted significantly, with volatility soaring, and the implied yield on options once reached 2000%, becoming the highest level in the United States.

Chairman David Bailey admitted that the market is heavily betting that the company is in a disadvantageous position.

NAKA is involved in both the highly regulated fields of healthcare and finance, combined with the high volatility of the Bitcoin market, making it a focal point for speculative funds. Recently, trading volume has surged, but technical indicators have repeatedly issued “oversold” warnings.

Industry under pressure: Premium and mNAV decline

David Bailey pointed out that the entire Bitcoin asset management industry is facing structural challenges:

1. Unsustainable business models are eliminated by the market.

2. Companies lacking long-term planning are gradually losing the trust of investors.

3. One-third of Bitcoin fund managers' stock prices have fallen below their market net asset value (mNAV).

In the past, giants like Strategy were able to easily raise funds and increase their Bitcoin holdings with a mNAV premium of over 2.0. However, today this value has long been hovering around 1.25, with new capital inflows slowing down and insufficient momentum for accumulation.

Even Giants Cannot Escape: Strategy Removed from S&P 500

Strategy, which holds a large amount of Bitcoin and has a market value of over 25 billion USD, was unexpectedly removed from the S&P 500 index in September.

J.P. Morgan described this as “a heavy blow to the entire cryptocurrency asset management industry,” raising further questions in the market about the role and risk status of listed Bitcoin funds.

Redefining Investor Confidence and Business Models

As the market premium declines and inventory accumulation slows, investors are beginning to question the sustainability of Bitcoin asset management companies.

Bailey believes that this is an opportunity for industry reset: “In the fiat system, the treasury is the bank. Now, we are building a Bitcoin bank. Banks that perform well will expand their assets, while those that do not adapt will be eliminated.”

He emphasized that the key to survival in the future lies in disciplined balance sheet management and transparency, rather than relying on market speculation.

Conclusion

The golden age of Bitcoin banks has come to an end, replaced by a strict selection and cleanup process. Whether it is NAKA, Strategy, or other asset management companies, they must prove their resilience and value amidst volatility and uncertainty. For investors, the coming months will be a key period to observe which companies can survive in the new round of “Bitcoin bank” reshuffling.