Nydig has called for Bitcoin Treasury companies to overthrow ‘Miskin’ MNAV metric
Striver Asset Management (ASST) gets semler scientific (SMLR) in an all-stock deal. While historically, the transition also draws attention to what could be a problem for investors that appreciate bitcoin treasury companies.
Acquisition is the first integration between two digital assets treasury (DATS) holding Bitcoin, which provides the company’s integrated control of more than 10,900 BTC and increases the net asset (NAV) value each part, viewed by investors as a measure of “harvest.”
In a note this week commenting on the acquisition, Greg Cipolaro, a global research leader in Nydig, argued that the commonly used “MNAV” metric, referred to as the Crypto -divided market cap, should be removed from the reporting of the industry as a whole.
“At best, it’s misleading; at worst, it’s not disingenuous,” the company claimed in the note.
Nydig said this account failed for operating businesses or other owners that could be owned by a DAT. Most of Bitcoin’s major treasury companies do, in fact, run businesses that increase value.
Second, Nydig wrote, MNAV often uses “assumed sharing of the remaining,” which may include convertible debt without achieving conversion conditions.
“Convert holders will be asked for cash, not sharing, in exchange for their debt. This is a heavier responsibility for a DAT than just the release of shares,” the firm added. “Since the debt is essential to reaping volatility (converts are calls + calls), DAT is incentive to maximize equity volatility.”
Currently, the public has exchanged Bitcoin treasury companies holding more than 1 million BTCs, and many now trade below their MNAV, which may suggest many acquisitions will come in the near future.
