A tsunami again Bitcoin
Treasury companies, companies that are almost exclusively dedicated to accumulating Bitcoin, are flooding the market.
Since all of them are more or less following the strategy play book (MSTR), the questions are increasing on the best ways of assessing them and comparing them with each other.
“The most important metric for a Bitcoin Treasury is the premium that quotes in relation to its underlying net assets, including any operational company,” wrote Greg Cipolaro, head of global investigation of the financial firm of Bitcoin Nydig, in a June 6 report.
On the surface, that means adding the Bitcoin, cash and business value of the company, excluding Bitcoin’s things, and subtracting obligations such as debt and preferred actions. “It is this cousin that allows these companies to convert actions for Bitcoins, acting effectively as a money change that converts actions for bitcoins,” said Cipolaro.
One of the most popular metrics, Mnav, measures the valuation of a company to the value of its net asset, in these cases, its Bitcoin Treasury bonds. A MNAV above 1.0 signs that investors are interested in paying a premium for exposure to shares in relation to their Bitcoin stash; However, a MNAV below 1.0 means that capital is now worth less than the company’s holdings.
But the MNAV is only “unfortunately poor” to analyze the strengths and weaknesses of these companies, said Cipolaro. The research report made use of other metrics such as NAV, MNAV measured by market capitalization, MNAV by business value and capital premium to NAV to provide a more complex image.
The table shows, for example, that the capital cousin of Semler Scientific (SMLR) and Trump Media (DJT) to NAV (which measures the percentage difference between the market price of a fund and its net asset value), are the lowest of the eight measures, which reach -10% and -16% respectively, despite the fact that both companies have a MNAV above 1.1.
Unfortunately, both SMLR and DJT have a little change on Monday, even when Bitcoin rises to $ 108,500 compared to the level of $ 105,000 on Friday night. Mstr is higher by just under 5%.
