Analysis: The mNAV metric commonly used by Bitcoin treasury companies may be misleading and inaccurate

ChainCatcher news, according to CoinDesk, NYDIG's Global Research Director Greg Cipolaro released a report indicating that the mNAV metric frequently used by Bitcoin treasury companies may be misleading, as mNAV does not take into account the operational businesses or other assets that the relevant companies may own.

Additionally, this metric often uses "assumed shares outstanding," which frequently includes convertible bonds that have not yet met conversion conditions, so the data may be inaccurate.

It is reported that mNAV is the ratio of market capitalization to net asset value. If mNAV is greater than 1, Bitcoin treasury companies can issue additional financing within a premium range and use the proceeds to purchase BTC, thereby increasing the per-share BTC holdings and enhancing the book value; if it converges to 1 or falls below 1, with the price of BTC declining and weak secondary market support, the flywheel mechanism will shift from "enhancement" to "dilution," creating negative feedback.