A tsunami of new bitcoin
Treasury companies – companies that are almost exclusively dedicated to collecting Bitcoin – flooding the market.
As all of them more or less follow the strategy (Mstr) Playbook, questions about the best ways to appreciate them and compare them with each other.
“The most important metric for a Bitcoin Treasury is the prize it trades in relation to its underlying net assets, including any operating company,” Greg Cipolaro, Global Research Manager at Bitcoin Financial Firm, wrote in a report on June 6.
On the surface, it means adding the company’s bitcoin, cash and business value excl. The Bitcoin things and withdraw obligations such as debt and preferred stock. “It is this prize that allows these companies to convert shares to Bitcoins that effectively act as a money extension that converts shares for Bitcoins,” Cipolaro said.
One of the most popular measurements, MNAV, measures a company’s valuation to its net asset value – in these cases their Bitcoin Treasuries. A mnav over 1.0 signales that investors are interested in paying a premium for exposure to the stock compared to its Bitcoin Stash; However, a MNAV below 1.0 means that equity is now worth less than the company’s inventory.
But MNAV alone is “unfortunately deficient” to analyze the strengths and weaknesses of these companies, Cipolaro said. The research report used other measurements such as NAV, MNAV measured by market value, MNAV according to business value and equity premium to NAV to give a more complex picture.
The table shows, for example, that Semler Scientific’s (SMLR) and Trump Media’s (DJT) Equity premium to NAV (which measures the percentage difference between a fund’s market price and its net asset value) is the lowest of the eight measured companies that come in at -10% and -16% despite the fact that both companies have a MAV over 1.1.
Unfortunately, both SMLR and DJT have changed slightly on Monday, even when Bitcoin climbs up to $ 108,500 against Friday evening’s level of $ 105,000. Mstr is higher with just shy at 5%.
