Strive Asset Management (ASSST) has acquired Semler Scientific (SMLR) in an agreement of the entire stock. While it is historical, the measure also caught attention to what a problem valued by Bitcoin Treasury companies can be.
The acquisition was the first fusion between two Treasury Bonds of Digital Assets (DATS) that Bitcoin possesses, which gives the combined control of the company of more than 10,900 BTC and increases the value of the net asset (NAV) per share, that DAT investors consider as a “yield” measure.
In a note this week commenting on the acquisition, Greg Cipolaro, Chief of Global Research of Nydig, argued that the “MNAV” metric commonly used, defined as market capitalization divided by cryptography, must be eliminated from the industry reports completely.
“In the best case, it is misleading; in the worst case, it is false,” said the firm in the note.
Nydig said that it does not take into account the operational companies or other assets that a DAT can possess. Most of the main Bitcoin Treasury companies, in fact, operate businesses that add value.
Secondly, Nydig wrote, MNAV often uses “actions assumed in circulation”, which could include convertible debt that has not met the conversion conditions.
“Converting the holders would demand effective, not actions, in exchange for their debt. This is a much more onerous responsibility for a DAT that simply issuing actions,” added the company. “Because the convertible debt is essentially the volatility harvest (the converts are debt + purchase options), the DAT is encouraged to maximize its capital volatility.”
Currently, Bitcoin Treasury companies that are quoted in the stock market have more than 1 million BTC, and many are now quoted below their MNAV, which could suggest more acquisitions in the near future.
