bitcoin Treasury Companies Need Smarter Capital Management: Expert
Matthew Sigel, VanEck’s digital assets researcher, advises Bitcoin treasury firms to tighten capital management. In a recent X post, Sigel warned that issuing shares near net asset value (NAV) can hurt investors. NAV is the total Bitcoin value divided by shares outstanding. It shows how much Bitcoin backs each share.
When stocks trade above NAV, issuing new shares boosts each share’s Bitcoin backing. However, if stocks trade at or below NAV, new shares can dilute existing shareholders.Sigel believes companies should pause share issuance if their stock price dips below 0.95 times NAV for ten days. This move protects shareholder value.
He suggests buying back shares if Bitcoin rises but stock prices lag. Companies should also review their strategies if the discount persists. Sigel argues that executive pay should focus on increasing NAV per share, not just Bitcoin holdings or share count. He says, “At NAV, dilution becomes harmful, not strategic.”
currently, no public Bitcoin treasury firm has traded below NAV for long. Yet, some are nearing this level. Companies use ATM programs to buy more Bitcoin. But this can be risky if the stock price matches or falls below NAV. It dilutes ownership without adding value.
For companies with Bitcoin treasuries, Sigel recommends pausing share issuance if the stock price falls below 0.95 times NAV for ten days. This prevents shareholder dilution. He also suggests buying back shares if bitcoin rises but the stock price doesn’t follow. if the discount persists, a strategic review is necessary.
Executive compensation should focus on growing NAV per share, not just Bitcoin holdings or share count. Sigel warns,”Shareholder dilution at NAV is extractive,not strategic.”
As of June 2025,61 public companies hold 673,897 BTC,or 3.2% of Bitcoin’s total supply. Most trade above their NAV,showing investor interest. Strategy is the largest corporate Bitcoin holder with over 582,000 BTC. It’s mNAV is 1.91. Semler Scientific and Trump Media & Technology Group have the lowest sentiment, with equity premiums to NAV at -10% and -16%, respectively.
