Analysis: The commonly used mNAV indicator by Bitcoin treasury companies may be misleading and inaccurate
ChainCatcher news, according to CoinDesk, Greg Cipolaro, Global Head of Research at NYDIG, released a report pointing out that the mNAV metric commonly used by bitcoin treasury companies may be misleading, as mNAV does not take into account the operating businesses or other assets that the relevant companies may own.
In addition, this metric often uses "assumed shares outstanding," which frequently includes convertible bonds that have not yet met conversion conditions, so the data may be inaccurate.
It is reported that mNAV is the ratio of market capitalization to net asset value. If mNAV is greater than 1, bitcoin treasury companies can issue additional shares at a premium and use the proceeds to purchase BTC, thereby increasing the BTC holdings per share and boosting book value; if it converges to 1 or falls below 1, the price of BTC itself declines, secondary market demand weakens, and the flywheel mechanism shifts from "accretion" to "dilution," creating negative feedback.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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