TechFlow, Sept. 28 — According to CoinDesk, Greg Cipolaro, Head of Global Research at NYDIG, released a report stating that the mNAV metric commonly used by Bitcoin treasury companies may be misleading. This is because mNAV does not account for potential operating businesses or other assets held by these companies. Additionally, the metric often relies on "assumed shares outstanding," which typically includes convertible bonds that have not yet met conversion conditions, potentially resulting in inaccurate data.
Notably, mNAV refers to the ratio of market capitalization to net asset value. When mNAV exceeds 1, Bitcoin treasury companies can conduct dilutive fundraising at a premium and use the proceeds to purchase BTC, thereby increasing BTC holdings per share and enhancing book value. However, if mNAV converges to or falls below 1, due to declining BTC prices and weak secondary market demand, the flywheel mechanism shifts from "value accretion" to "dilution," creating a negative feedback loop.
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