TLDR
- NYDIG calls for elimination of mNAV metric used to value crypto treasury companies, calling it misleading and disingenuous
- The metric fails to account for operating businesses and other assets beyond crypto holdings that these companies own
- mNAV uses assumed shares outstanding which may incorrectly include unconverted convertible debt as equity
- Strive Asset Management acquired Semler Scientific in the first merger between two bitcoin treasury companies
- The combined company now controls over 10,900 BTC, with many treasury firms currently trading below their mNAV values
NYDIG’s global head of research Greg Cipolaro has called for the crypto industry to abandon a popular valuation metric used for bitcoin treasury companies. The market-to-net asset value (mNAV) metric should be “deleted and forgotten,” according to a research note released Friday.
The criticism comes as Strive Asset Management completed the first-ever acquisition of one bitcoin treasury company by another. Strive acquired Semler Scientific in an all-stock deal, creating a combined entity with over 10,900 BTC in its treasury.
JUST IN: CEO of Mimesis Capital, Louis Liu (@louishliu) just said "mNAV is just a sentiment gauge — low BTC sentiment = low mNAV for #Bitcoin treasuries, and vice versa." pic.twitter.com/Ad8ST5r5AR
— BitcoinTreasuries.NET (@BTCtreasuries) September 27, 2025
The mNAV metric compares a company’s market capitalization to the value of its crypto holdings. Companies holding more crypto than their market value are considered to trade at a discount. Those valued higher than their crypto holdings trade at a premium.
Cipolaro argues the metric is fundamentally flawed in its approach. “At best, it’s misleading; at worst, it’s disingenuous,” he stated in the research note.
Problems with Current Valuation Method
The first major issue involves how mNAV handles operating businesses. Most bitcoin treasury companies conduct operations beyond simply buying and holding crypto assets. MicroStrategy, for example, generates revenue through software sales alongside its bitcoin holdings.
The mNAV calculation fails to account for these additional business operations and assets. This creates an incomplete picture of a company’s true value for investors making buy and sell decisions.
The metric also ignores other valuable assets that companies may own outside of their crypto treasuries. This oversight can lead to inaccurate valuations and poor investment choices.
Debt Accounting Issues
The second problem involves how mNAV treats convertible debt. The metric uses “assumed shares outstanding” in its calculations, which often includes convertible debt that hasn’t been converted to equity.
Convertible debt holders typically demand cash rather than shares when exchanging their debt positions. This creates a more burdensome liability for companies than simply issuing new shares to investors.
“Accounting for convertible debt automatically as equity is not correct from an accounting or economic perspective,” Cipolaro explained. The debt essentially functions as volatility harvesting since it combines debt with call options.
This structure incentivizes bitcoin treasury companies to maximize their equity volatility. The dynamic creates additional risks that the mNAV metric fails to capture properly.
Market Context and Acquisition Activity
Currently, publicly traded bitcoin treasury firms hold over 1 million BTC collectively. Many of these companies are trading below their mNAV values, which could signal more acquisition activity ahead.
The Strive-Semler merger demonstrates how companies are consolidating in this space. The deal increases net asset value per share for the combined entity, which investors view as a form of yield generation.
Medical device company Semler Scientific had been trading at a discount to its crypto holdings since August. This discount occurred despite increased competition in the bitcoin treasury space.
