A wave of sharp drawdowns across crypto-exposed equities like Coinbase (NASDAQ:COIN), Circle (NYSE:CRCL), and Metaplanet (OTC:MTPLF) is pointing to a broad market rejection of inflated valuations.
What Happened: The declines, driven less by macro headwinds and more by overpayment for narrative-driven exposure, are triggering a necessary reset in how investors price crypto’s equity proxies, according to 10x Research.
Crypto equities are undergoing a painful repricing.
Shares of major crypto-linked companies, including Coinbase, Circle, Japan’s Metaplanet, and South Korea’s Kakaopay, have posted losses of up to 50% from recent highs, a collapse fueled not by systemic failures, but by investor realization that the premium they paid for exposure to digital assets was detached from financial fundamentals.
Metaplanet, once touted as Japan’s “Strategy (NASDAQ:MSTR) proxy,” has seen its stock plunge over 50% from its June peak.
The company had benefited from local programs like the NISA tax shelter and speculative retail flows anticipating crypto ETF approvals and a friendlier tax regime in Japan.
However, …