CryptoQuant CEO: Selling BTC when mNAV is below 1 is not a wise move, potentially leading to a death spiral
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CryptoQuant CEO: Selling BTC when mNAV is below 1 is not a wise move, potentially leading to a death spiral
Earlier reports indicated that Strategy CEO stated, "We would only sell Bitcoin if mNAV falls below 1 and financing is not possible." According to Strategy's official website, the current mNAV stands at 1.13. Despite Strategy disclosing tonight an additional purchase of 130 BTC, its stock price continued to drop over 6%, currently trading around $166.
Navigating Web3 tides with focused insightsTechFlow, December 1 — Ki Young Ju, founder and CEO of CryptoQuant, posted on social media stating that it is unwise for Strategy to sell BTC when mNAV (the ratio of a company's market value to the value of its held Bitcoin) falls below 1. While such a move might benefit MSTR shareholders in the short term, it would ultimately harm BTC, which in turn damages MSTR's interests, creating a death spiral.
Earlier report, Strategy's CEO stated, "We would only sell Bitcoin if mNAV drops below 1 and we are unable to raise funds." According to Strategy's official website, the current mNAV stands at 1.13. Despite Strategy disclosing another BTC purchase tonight (adding 130 BTC), its stock price continued to drop over 6%, currently trading around $166.
