On June 16, Matthew Sigel, the Digital Asset Research Director at VanEck, warned that at least one Bitcoin inventory company (SMLR) is approaching net asset value trading. He pointed out that continuing to raise funds through market issuance to purchase Bitcoin would dilute rather than create shareholder value.
Sigel suggested that companies establish protective mechanisms, including suspending issuance when stock prices are below net value, prioritizing stock buybacks, and adjusting executive compensation structures. He called on the board of directors to take timely action to avoid repeating the mistakes of mining companies with excessive stock issuance and overly high executive compensation.
