Bitcoin concept stocks approach the net asset value red line, blind financing may become a 'value black hole'

As the stock prices of some listed companies holding Bitcoin (such as $SMLR) gradually approach their net asset value, the market has begun to question their **'strategy of fundraising through issuing new shares to buy Bitcoin'**.

🔍 The logic behind this is not complicated:

When the market value is close to the net value, continuing to finance through the secondary market to purchase Bitcoin is essentially issuing shares at a price close to the liquidation value, which does not create value for shareholders but instead dilutes their equity.

📊 Professional perspective suggests:

1️⃣ Suspend financing: Issuance should be immediately halted when the stock price is below net value;

2️⃣ Prioritize buybacks: Buybacks + balance sheet reduction to enhance intrinsic value;

3️⃣ Restructure incentives: Avoid high salaries for executives during periods of low stock prices, forming a 'loss incentive' paradox.

💡 A warning signal worth noting: Many Bitcoin mining companies and concept stocks fell into a valuation trap in the last bull-bear cycle due to excessive expansion + imbalanced incentive mechanisms, leading to continuous dilution of shareholder value.

📌 Conclusion: Bitcoin can rise, and asset structures can be optimized, but the cycle of 'issuing - buying Bitcoin - reissuing', once detached from the market value foundation, will only make investors pay the bill for management.