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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.<\/p>\n
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.\u00a0<\/p>\n
\u201cAs 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,\u201d VanEck’s head of digital assets research, Matthew Sigel, said<\/a> in an X post on Monday.<\/p>\n He added that no public company has traded below the net asset value of its Bitcoin (BTC<\/a>) for a sustained period, but that Semler Scientific, Inc. (SMLR) \u201cis now app<\/a>roaching parity.\u201d<\/p>\n Read more<\/p>\n<\/p>\n If you liked the article, do not forget to share it with your friends. Follow us on\u00a0Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n If you want to read more News<\/a> articles, you can visit our General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n\n