Strive Asset Management (ASST) has successfully taken over Semler Scientific (SMLR) through an all-stock transaction. This landmark event not only marks a significant milestone but also highlights potential concerns for investors evaluating bitcoin treasury companies.
This acquisition represents the inaugural merger between two Digital Asset Treasuries (DATs) that possess bitcoin, granting the unified entity control of more than 10,900 BTC. This move boosts the net asset value (NAV) per share, a metric DAT investors consider as an indicator of “yield.”
In commentary released this week regarding the acquisition, Greg Cipolaro, who leads Global Research at NYDIG, suggested eliminating the widely used “mNAV” metric from industry reports. This metric is calculated by dividing market cap by crypto holdings.
“At its best, it’s misleading; at its worst, it’s deceptive,” stated NYDIG in their report.
The firm emphasized that mNAV does not take into account operational businesses or other assets owned by a DAT. Many leading bitcoin treasury firms indeed run businesses that contribute additional value.
Furthermore, NYDIG noted that mNAV often relies on “assumed shares outstanding,” which might include convertible debt yet to meet conversion criteria.
“Convertible debt holders would prefer cash over shares in exchange for their obligations. For a DAT company, this presents a far greater liability than merely issuing new shares,” they explained. “Since convertible debt essentially involves volatility management—being both debt and call options—the DAT is motivated to enhance its equity volatility.”
Currently holding over 1 million BTC collectively among publicly traded bitcoin treasury firms—with many trading below their mNAV—this scenario could indicate more mergers and acquisitions on the horizon.