VanEck Digital Assets Head: Public Companies Holding Bitcoin Are Approaching Net Asset Value Parity

ChainCatcher news, VanEck's Head of Digital Asset Research Matthew Sigel warns that at least one Bitcoin mining company ($SMLR) is approaching net asset value parity trading.

He pointed out that continuing to raise funds through the market to purchase Bitcoin in this situation would dilute rather than create shareholder value. Sigel suggested that companies establish protective mechanisms, including suspending issuance when the stock price is below net asset value, prioritizing stock buybacks, and adjusting executive compensation structures. He urged the board to take timely action to avoid repeating the mistakes of mining companies that excessively issued stock and had overly high executive compensation.