VanEck exec advises Bitcoin-holding firms to prevent dilution as stock approaches NAV

Matthew Sigel, Head of Digital Assets Research at VanEck, said on X that Bitcoin (BTC) treasury companies should take precautionary steps as their stock prices near net asset value (NAV). NAV is the value of a company’s assets minus its liabilities, used to gauge whether its stock trades at a premium or discount to its holdings. While no public firm holding BTC has consistently traded below its NAV, he noted that one is now approaching that level. As some firms raise funds through at-the-market (ATM) offerings to buy more BTC, Sigel warned that issuing shares too close to NAV risks diluting shareholder value. He recommended halting ATM sales if the stock trades below 0.95 times NAV for 10 days, using buybacks when BTC rises but the stock underperforms and pursuing strategic options like mergers or spinoffs if discounts linger.