An analyst of one of the largest asset managers in Crypto is warning Bitcoin Treasury companies that they must pay attention to the ratio of their shares compared to their BTC -Netto assets (NAV).
Matthew Sigel, the head of Digital Assets Research at Vaneck, out That no public BTC Treasury companies have traded under their Bitcoin navs for a long period.
Sigel notes That one company, the American medical technology company Semler Scientific, is approaching parity.
“Since some of these companies collect capital through large programs on the Markt (ATM) to buy BTC, there is a risk of risks: if the shares act at or near NAV, constant issue of shares can be diluted instead of value.
That is not a capital formation. It’s erosion.
Companies that pursue a Bitcoin Treasury strategy must now assume guarantees, while premiums still exist. Some ideas:
- Announce a break for ATM issue if the share is traded below 0.95 times NAV for 10 or more trading days.
- Giving prioritization to Back purchase when BTC appreciates it, but equity does not reflect that value.
- Launch a strategic assessment if a NAV discount holds. That can include a merger, spider -off or sunset of the BTC strategy. “
Sigel also argues that the compensation of the executive must adjust to the growth of the NAV -PER shares, not with the total number of shares or the size of the Bitcoin position.
“We have previously seen this film with the miners: persistent issue and surplus executive wage. No need for a follow -up.
- As soon as you act at NAV, the dilution of shareholders is no longer strategic. It is extractive.
- Signs and shareholders must now act with discipline, while they still have the benefit of optionality. “
Last week the top pseudonym Donalt warned that he thinks Bitcoin Treasury companies will be the source of mass sales pressure in the next Bear Market.
“Bitcoin Treasury companies … will be the reason for the next bear market that is as violent as previous bear markets, and nobody can convince me otherwise.
Good ponzi while they go, so keep going. “
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