{"id":49636,"date":"2025-09-29T12:23:11","date_gmt":"2025-09-29T05:23:11","guid":{"rendered":"https:\/\/hbbgroup.net\/crypto-treasury-mnav-metric-needs-to-be-deleted-nydig\/"},"modified":"2025-09-29T12:23:11","modified_gmt":"2025-09-29T05:23:11","slug":"crypto-treasury-mnav-metric-needs-to-be-deleted-nydig","status":"publish","type":"post","link":"https:\/\/hbbgroup.net\/zh\/crypto-treasury-mnav-metric-needs-to-be-deleted-nydig\/","title":{"rendered":"Crypto treasury mNAV metric \u2018needs to be deleted\u2019 \u2014 NYDIG"},"content":{"rendered":"
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The crypto industry should stop using the popular market to net asset value (mNAV) metric as it\u2019s inaccurate and misleading to investors, says NYDIG\u2019s global head of research, Greg Cipolaro.<\/p>\n

\u201cThe industry definition of \u2018mNAV\u2019 needs to be deleted and forgotten,\u201d Cipolaro wrote<\/a> in a note on Friday. \u201c\u2018Market cap to bitcoin\/digital asset value,\u2019 the original definition of mNAV, is a useful metric for nothing.\u201d<\/p>\n

He added that mNAV doesn\u2019t account for treasury companies that conduct other business outside of buying and holding vast amounts of crypto, and doesn\u2019t properly represent a firms convertible debt.<\/p>\n

Traders and investors use mNAV, sometimes also called multiple of net asset value, to determine the value of companies and when to buy and sell their shares<\/a>, comparing the value of crypto holdings to market capitalization.<\/p>\n

Companies that hold more crypto than they\u2019re worth are considered to trade at a discount<\/a>, while firms that are more valuable than their crypto holdings trade at a premium.<\/p>\n

Metric is \u201cmisleading\u201d investors<\/h2>\n

\u201cAt best, it\u2019s misleading; at worst, it\u2019s disingenuous,\u201d Cipolaro said.<\/p>\n

The reason, according to Cipolaro, is two-fold, as mNAV \u201cdoesn\u2019t give credit\u201d to crypto treasury companies<\/a> that have operations and assets outside of crypto, such as Strategy Inc.\u2019s software sales.<\/p>\n

Medical device turned Bitcoin treasury firm Semler Scientific has traded at a discount to its crypto holdings since August amid a surge of competition. Source: <\/em>NYDIG<\/em><\/a><\/figcaption><\/figure>\n

\u201cNAV [net asset value] is what matters in the game of increasing digital assets\/share, not enterprise value or heaven forbid market cap,\u201d Cipolaro wrote.<\/p>\n

He said if a crypto treasury company can create yield<\/a>, another key metric for investors, it can issue equity at a premium to its net asset value.<\/p>\n

Debt unaccounted for by using mNAV<\/h2>\n

Cipolaro argued another reason to stop using mNAV is that the metric uses \u201cassumed shares outstanding,\u201d which likely includes convertible debt such as loan deals that are yet to be converted.\u00a0<\/p>\n

\u201cWhen you peel back the convertible debt part, things unravel,\u201d he wrote. \u201cAccounting for convertible debt automatically as equity is not correct from an accounting or economic perspective.\u201d<\/p>\n

Convertible debt holders \u201cwould demand cash, not shares, in exchange for their debt,\u201d Cipolaro said.<\/p>\n

Related: <\/strong><\/em>Crypto treasury companies pose a similar risk to the 2000s dotcom bust<\/strong><\/em><\/a><\/p>\n

\u201cThis is a much more onerous liability for a DAT [digital asset treasury] than simply issuing shares,\u201d he added, as convertible debt is \u201cessentially volatility harvesting\u201d and crypto treasury companies are \u201cincentivized to maximize [their] equity volatility.\u201d<\/p>\n

Hard to predict if Strive, Semler merger is good deal<\/h2>\n

Cipolaro\u2019s note came after Strive Inc. announced it acquired<\/a> Semler Scientific on Monday, the first time a crypto treasury company had acquired another.<\/p>\n