Bitcoin-buying public companies should be ready to cancel more buys if the value of their holdings eclipses their market cap, says VanEck crypto researcher Matthew Sigel.
Public companies buying up Bitcoin should consider sunsetting the tactic altogether if their stock prices drastically drop, according to a VanEck executive who warns that a major Bitcoin-scooping firm is close to being caught out.
“As some of these companies raise capital through large at-the-market (ATM) programs to buy BTC, a risk is emerging: If the stock trades at or near NAV [net asset value], continued equity issuance can dilute rather than create value,” VanEck’s head of digital assets research, Matthew Sigel, said in an X post on Monday.
He added that no public company has traded below the net asset value of its Bitcoin (BTC) for a sustained period, but that Semler Scientific, Inc. (SMLR) “is now approaching parity.”
