In a groundbreaking announcement that has sent ripples through the crypto industry, Strive Asset Management (ASST) has acquired Semler Scientific (SMLR) in a landmark all-stock deal. This merger, the first of its kind between two Digital Asset Treasuries (DATs), underscores increasing stagflation concerns while drawing attention to potential challenges in cryptocurrency price analysis. The combined entity now oversees more than 10,900 BTC, enhancing their net asset value (NAV) per share, a crucial metric for DAT investors.
Cryptocurrency Price Analysis: A New Metric Needed?
Greg Cipolaro, Global Head of Research at NYDIG and a prominent figure in the crypto analysis sphere, recently criticized the prevalent use of the “mNAV” metric in industry assessments. According to NYDIG’s latest report, this metric, defined as market cap divided by crypto held, is not only misleading but potentially harmful. It fails to consider the operating businesses or other assets that a DAT might possess, which are significant contributors to their overall value.
Furthermore, NYDIG highlights that “mNAV” often leverages “assumed shares outstanding,” including convertible debt that may not yet fulfill conversion conditions. This oversight could lead to discrepancies in cryptocurrency price analysis. “Convertible debt holders typically demand cash redemption, not shares, making this a heavier liability for a DAT than merely issuing shares,” the report elaborated. “Such financial mechanisms are akin to volatility harvesting, prompting DATs to maximize their equity volatility for potential gains.”
With over 1 million BTC in custody among public bitcoin treasury companies and trading figures falling below their mNAV, the market is ripe for further consolidation, emphasizing the need for effective cryptocurrency price analysis tools and techniques.
To stay ahead in the rapidly evolving crypto landscape, industry players must adapt and utilize more accurate and comprehensive analytical metrics. This shift is essential to capture the full economic potential and address the current stagflation concerns affecting the global financial environment.
At Bakara Invest, our analysis suggests that continuous monitoring of market trends and adoption of precise analytical metrics will bolster investor confidence and ensure sustainable growth in cryptocurrency markets.
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