Bitcoin treasury companies are facing significant challenges as nearly 40% of the top 100 firms now trade at discounts to their net asset value (NAV), according to BitcoinTreasuries.net. This marks a stark reversal from 2025's boom, where companies enjoyed premiums on their Bitcoin holdings. The shift has left many treasuries worth less than the Bitcoin they hold, with major players like Strategy and Twenty One Capital trading at a 17% discount. The downturn began in October, with only France's The Blockchain Group outperforming the S&P 500's 16% return in 2025. The situation draws parallels to the 2020 Grayscale trade, where premiums collapsed following the introduction of Bitcoin ETFs. Analysts predict consolidation in the sector as weaker treasuries become acquisition targets. The current market dynamics hinder companies from issuing stock to purchase more Bitcoin, effectively ending the previous growth strategy.