TechFlow news, June 16 — Matthew Sigel, VanEck's Head of Digital Asset Research, warned that at least one Bitcoin inventory company ($SMLR) is now trading close to net asset value parity. He noted that continuing to raise capital through market issuances to purchase Bitcoin under such circumstances would dilute rather than create shareholder value. Sigel recommended implementing protective measures, including halting share issuance when the stock price falls below net asset value, prioritizing share buybacks, and adjusting executive compensation structures. He urged boards to act promptly to avoid repeating the mistakes of mining companies that excessively issued shares and provided excessive executive pay.
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