NYDIG CALLS FOR BITCOIN TREASURY COMPANIES TO DROP 'MISLEADING' MNAV METRIC

Summary from the TLDR Crypto newsletter

NYDIG's Global Head of Research, Greg Cipolaro, argues that the commonly used mNAV metric for valuing Digital Asset Treasury companies should be eliminated from industry reporting, calling it "misleading" at best and "disingenuous" at worst, following Strive's acquisition of Semler Scientific in the first-ever DAT merger. The firm criticizes mNAV for failing to account for operating businesses or other assets that DATs typically own, noting that most major bitcoin treasury firms operate value-adding businesses beyond their crypto holdings, while the metric often uses "assumed shares outstanding" that may include unconverted debt obligations. NYDIG warns that convertible debt holders would demand cash rather than shares for their debt, creating more onerous liabilities than simple share issuance, while convertible debt structures incentivize DATs to maximize equity volatility since converts function as debt plus call options.