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Matthew Sigel, the head of digital assets research at VanEck, a global investment management firm managing billions of assets, believes there is trouble brewing on the horizon for companies in the corporate Bitcoin treasury sweepstakes.  Sigel highlighted the developing issue for Bitcoin treasury companies in a lengthy X post. However, he also shared some alternative solutions for companies nearing the hypothetical danger zone to consider. $SMLR 👀 — matthew sigel, recovering CFA (@matthew_sigel) June 16, 2025 Sigel sees a problem for Bitcoin treasury companies Sigel’s post began by highlighting how no public BTC treasury company has yet to trade below its Bitcoin NAV for a sustained period. However, he claimed one is now approaching break-even territory, an emerging risk for some companies that raise capital through large at-the-market (ATM) programs to buy BTC. According to Sigel, if the stock trades at or near NAV (net asset value), continued equity issuance can dilute rather than create value, which would lead to capital erosion rather than formation. Under normal circumstances, companies like Semler and Strategy have stock prices that trade above the value of their Bitcoin (at a premium) which means that investors are willing to pay more for the stock than just the Bitcoin it owns. However, Sigel says at least one company’s stock price is getting very close to its Bitcoin NAV and if the stock price falls to or below the NAV, it’s a red flag. If the stock price is close to or below NAV, selling new shares becomes self-harming as it dilutes the value for existing shareholders, meaning each share represents a smaller piece of the company’s Bitcoin, something investors don’t like to hear. At break-even level, offerings no longer create value. Instead, they destroy shareholder value. It can also become extractive with the company’s management, who…

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Filed under: News - @ June 16, 2025 11:20 am