Strive Asset Management (ASST) has acquired Semler Scientific (SMLR) in an All-Stock agreement. While historic, the move also drawn attention to what could be a problem for investors who value Bitcoin Treasury companies.
The acquisition was the first merger between two digital asset boxes (DATS) that had Bitcoin, giving the combined corporate control of more than 10,900 BTC and increasing Net Asset Value (NAV) per day. Share that DAT-Investors consider a measure of “dividend.”
In a note this week commenting on the acquisition, Greg Cipolaro, Global Head of Research in Nydig, claimed that the commonly used “MNAV” metrics, defined as market capital divided by crypto -should be removed from industries reporting completely.
“At best, it’s misleading; at worst, it’s uncomfortable,” the company claimed in the note.
Newly pointed out that it fails to explain operating companies or other assets that a DAT may own. Most major Bitcoin Treasury companies actually run companies that add value.
Secondly, newly wrote, MNAV often uses “assumed outstanding shares” which could include convertible debt that has not met conversion conditions.
“Converter holders would require cash, not shares, in return for their debt. This is a much more stressful responsibility for a date than just issuing shares,” the company added. “Since convertible debt essentially is volatility harvest (converts are debt + call options), DAT is incitamated to maximize its stock evolatility.”
Currently, listed Bitcoin Treasury companies have over 1 million BTC, and many are now trading under their MNAV, which may suggest that more acquisitions will be in the near future.
