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Strive Asset Management (ASST) has acquired Semler Scientific (SMLR) in an all-stock deal. While historic, the determination besides drew attraction to what whitethorn beryllium a occupation for investors valuing bitcoin treasury firms.
The acquisition was the first-ever merger betwixt 2 Digital Asset Treasuries (DATs) holding bitcoin, giving the combined institution power of much than 10,900 BTC and increases nett plus worth (NAV) per share, which DAT investors presumption arsenic a measurement of “yield.”
In a enactment this week commenting connected the acquisition, Greg Cipolaro, Global Head of Research astatine NYDIG, argued that the commonly utilized “mNAV” metric, defined arsenic marketplace headdress divided by crypto held, should beryllium removed from manufacture reporting altogether.
“At best, it’s misleading; astatine worst, it’s disingenuous,” the steadfast claimed successful the note.
NYDIG pointed retired that it fails to relationship for operating businesses oregon different assets that a DAT whitethorn own. Most large bitcoin treasury firms do, indeed, run businesses that adhd value.
Second, NYDIG wrote, mNAV often uses “assumed shares outstanding,” which could see convertible indebtedness that hasn’t met conversion conditions.
“Convert holders would request cash, not shares, successful speech for their debt. This is simply a overmuch much onerous liability for a DAT than simply issuing shares,” the steadfast added. “Because convertible indebtedness is fundamentally volatility harvesting (converts are indebtedness + telephone options), the DAT is incentivized to maximize its equity volatility.”
Currently, publically traded bitcoin treasury firms clasp implicit 1 cardinal BTC, and galore are present trading beneath their mNAV, which could suggest much acquisitions are coming successful the adjacent future.
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