The Sino-U.S. trade war has reignited, and #Bitcoin concept stocks are facing selling pressure.

Trump announced that starting from November 1, a 100% tariff will be imposed on products from China, aimed at retaliating against China's decision to restrict the export of rare earth materials.

The financial markets reacted strongly to this, with the S&P 500 index falling by 2.71% compared to the previous day. Global stock markets were generally affected, leading to a decrease in investors' risk appetite, and cryptocurrency-related stocks also experienced significant declines.

As of Friday's close on the New York stock market, leading digital asset company stocks fell sharply across the board. Cryptocurrency exchange Coinbase (COIN) closed at $357.01, down 7.75% from the previous day's closing price of $387.

The stock price of the Japanese Bitcoin financial company Metaplanet (MTPLF) closed down by 2.25% to $3.48.

The Bitcoin mining company MARA Holdings, Inc. (MARA)'s stock price experienced one of the largest declines, closing down 7.67% at $18.65.

At the same time, Bitcoin asset company Strategy (MSTR) also suffered heavy dumping. The stock closed at 304.79 dollars that day, down 4.84% from the previous trading day's 320.29 dollars.

The market has shifted from concerns about short-term stock price declines to increasing worries about the company's fundamental valuation metrics. According to data from the Saylortracker platform, Strategy's market-to-net asset value ratio (mNAV) once fell to 1.32, hitting its lowest level in nearly two years (19 months).

Geoffrey Kendrick, head of digital assets at Standard Chartered, warned that maintaining mNAV above 1.0 is the "lifeline" for digital asset financial companies (DAT) to continue expanding their balance sheets. Once it falls below that, it indicates a weak corporate balance sheet, which may face the risk of being acquired or exiting the market, accelerating the risk of industry reshuffling.

The acquisition funds for Bitcoin by companies like Strategy primarily come from private equity financing (PIPE), and the companies subsequently lower their stock prices to align with the PIPE issuance price; CryptoQuant reported last month that this model has caused some early investors to incur losses of up to 55%, leading to increased pressure on the related financing structure.

According to Bitcoin Treasuries data, Strategy currently holds BTC worth approximately $72.1 billion, while its market value is $86.7 billion, indicating a holding premium of $14.6 billion.

Most analysts point out that this premium mainly stems from founder Michael Saylor's active promotion of Bitcoin bonds and related investment products, as well as investors' optimistic expectations regarding its strategic layout.

#China-U.S. Trade War