Strive Asset Management (ASST) has acquired Semler Scientific (SMLR) in all share transactions. Although historic, the move also brought attention to what could be a problem for investors who value Bitcoin finance companies.
The acquisition was the first merger between the two Digital Asset Treasury Departments (DATS) holding Bitcoin, giving management of a total company of 10,900 BTC and increasing the net asset value per share (NAV).
In a note commenting on this week’s acquisition, NYDIG’s global research director Greg Cipolaro argued that the commonly used “MNAV” metric, defined as market capitalization divided by Crypto Hold, should be removed entirely from industry reports.
“At best, it’s misleading. At worst, it’s dishonest,” the company argued in a memo.
Nydig noted that it does not consider any business or other assets that DAT may own. Most major Bitcoin finance companies actually run businesses that add value.
Secondly, Nydig writes that he is. MNAV is often used as “assuming a resignation stock.”
“Converter holders will ask for cash rather than stock in exchange for debt. This is a much more troublesome liability than simply issuing shares,” the company added. “Because convertible debt is essentially a harvest of volatility (conversion is a debt + call option), DAT is incentivized to maximize stock volatility.”
Currently, publicly available Bitcoin financing companies have over 1 million BTCs, with many people below MNAV.
