ChainCatcher message, VanEck digital asset research director Matthew Sigel warns that at least one Bitcoin mining company ($SMLR) is approaching net asset value parity trading.

He pointed out that continuing to raise funds through the market to purchase Bitcoin in this scenario would dilute rather than create shareholder value. Sigel suggested that companies establish protective mechanisms, including suspending issuance when the stock price falls below net asset value, prioritizing stock repurchases, and adjusting executive compensation structures. He called on the board of directors to take timely action to avoid repeating the mistakes of mining companies that excessively issued stock and had overly high executive compensation.