According to BlockBeats, Matthew Sigel, the head of digital asset research at VanEck, warns that at least one Bitcoin inventory company (SMLR) is approaching parity trading with its net asset value. He pointed out that continuing to raise funds through the market to buy Bitcoin will dilute shareholder value.
Sigel suggests that the company establish protective mechanisms, including suspending issuance when the stock price falls below net value, prioritizing stock buybacks, and adjusting executive compensation structures. He calls on the board to take timely action to avoid repeating the mistakes of mining companies that overissue stock and have excessively high executive compensation.
