Public companies that buy Bitcoin should consider sleeping tactics if their stock price is decreasing considerably, according to a Vaneck manager who warns that a large Bitcoin scooping company is about to be caught up.
“While some of these companies increase capital thanks to major programs at the market level (ATM) to buy BTC, a risk emerges: if the action is negotiated to either navigation [net asset value]The continuing program of shares can dilute rather than creating value, “said the research manager on Vaneck’s digital assets, Matthew Sigel on Monday.
He added that no public company was negotiated below the value of the net assets of its bitcoin (BTC) for a sustained period, but that Semler Scientific, Inc. (SMLR) “now approach to parity”.
Sowing stock decreases by half as Bitcoin skyrocketed
Semler is a medical technology company that bought Bitcoin for the first time in May 2024 and increased its assets to the 13th largest among public enterprises, with 3,808 BTC worth $ 404.6 million.
Bitcoin continued to reach new heights this year, but the course of the action of Semler fell by more than 45% this year at the end of the negotiation on Friday at the same level as when the company began to buy Bitcoin, drawing market capitalization at around $ 434.7 million.
The multiple of Nav de Semler (MNAV), which takes its market capitalization and divides it by its Bitcoin battery, fell below 1x to approximately 0.821x, according to corner data.
Bitcoin purchasing companies need “guarantees now”
Semler, as is typical among other Bitcoins purchasing companies, has undertaken several action cycles and debt issuance to collect funds to buy more bitcoin, the company and investors Paris will be updated to Semler’s actions.
However, as gains may not always be the case, Sigel has warned Bitcoin purchasing companies to “adopt guarantees now, while premiums still exist”.
He indicated that companies that were invested in massively in Bitcoin should a break in their market offers if their actions are negotiated below a waiting value of 0.95x for at least 10 days.
In relation: New Bitcoin vouchers can crack under price pressure
These companies should also “prioritize buyouts when BTC appreciates, but equity does not reflect this value”.
Finally, Sigel said that businesses should “launch a strategic exam if the NAV reduction persists”.
“This could include a merger, a fallout or a sunset from the BTC strategy.”
Paying executives for growth, not the size of the Bitcoin battery
Sigel said that Bitcoin purchase companies should align the remuneration of their managers on the growth of the transparent asset value by action, “not with the size of the bitcoin or the total number of shares.”
He again urged business leaders to “act with discipline now, when they still have the benefit of the optionality”.
“Once you negotiate at NAV, shareholders’ dilution is no longer strategic. It is extractive,” said Sigel.
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