“The Commonly Used MNAV IS AN INSUFICIENT GAUGE for MEASURING RELATIVE VALUATIONS, ArGues Nydig’s Greg Cipolaro”, – WRITE: www.coindesk.com
Treasury Companies – FIRMS THAT ALMOST EXCLUSIVELY DEDICATE THEMSELVES TO ACCUMULATING BITCOIN – IS FLODING The Market.
Since All of Them Are More or Less Following Strategy’s (Mstr) PlayBook, Questions Are Rising About the Best Ways to Value Nat, and Compare Them to Each.
“The MOST IMPORTANT METRIC FOR A BITCOIN TREasury is the Premium It Trades at Relative to Iterlying Net Assets, Including Any Operation Company FIRM NYDIG, WROTE IN A JUNE 6 REPORT.
On the Surface, that Means Administration Up the Company’s Bitcoin, Cash and Enterprise Value Excluding the Bitcoin Stuff, and Subtracting Obligations Such as Debt and Preferred Stock. “IT’s this premium that allows thos companies to convert Stock for Bitcoins, Effectvely Acting as A Money Changer Converting Shares for Bitcoins,“ Cipolaro Said.
One of the most popular Metrics, MNAV, MEASURES A company’s Valuation to it Net Asset Value – in these Cases, Their Bitcoin Treasuries. An MNAV Above 1.0 Signals that Investors are interested in paying a premium for exposure to the stock right to it bitcoin stash; However, An MNAV BLOW 1.0 Means the Equity is Now Worth Less than the Company’s Holdings.
But MNAV ALONE IS “WOEFULLY DEFICIENT” to Analyze The Strengths and Weaknesses of Tese Firs, Cipolaro Said. The Research Report Made Use of Other Metrics Such as Nav, MNAV MEASURED BY Market Capitalization, MNAV BY ENTERPRISE VALUE, AND EQUITITY Premium to Navide A More Complex.
The Table Shows, For Example, That Semler Scientific’s (Smlr) and Trump Media’s (DJT) Equity Premium to Nav Are The Lowest of the Eight Measured Companies, Coming in at -10% and -16% Respectvely, Despite The fact that bot companies have an mnav above 1.1.
ALAS, BOTH SMLR AND DJT Are Little-Conged On Monday Even as Bitcoin Climbs to $ 108,500 Versus Friday Evening’s $ 105,000 Level. Mstr is Higher by just shy of 5%.
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