NYDIG calls on Bitcoin treasury companies to abandon the "misleading" mNAV metric

PANews reported on September 28 that Strive Asset Management has acquired Semler Scientific through an all-stock transaction to create a merged company with over 10,900 BTC. In response, Greg Cipolaro, NYDIG's Global Head of Research, noted in the report that the commonly used "mNAV" metric (defined as market capitalization divided by the held Crypto Assets) should be removed from industry reports. This acquisition highlights the potential issues with the "mNAV" metric, which is used to assess the value of Bitcoin treasury companies but could be misleading or dishonest. NYDIG pointed out that, firstly, mNAV does not take into account the operating businesses or other assets that a Digital Asset Reserve Company (DAT) may own, while most large Bitcoin asset reserve companies do indeed have value-creating businesses. Secondly, mNAV often uses "assumed shares outstanding," which may include convertible bonds that do not meet conversion conditions. Convertible bondholders may demand cash repayment, making this liability much heavier for a DAT than simply issuing shares, and convertible bonds are essentially volatility Arbitrage tools, giving DAT an incentive to maximize equity volatility.