VanEck flags dilution risk from equity issuance near NAV.
Pause ATM share sales under 0.95x NAV.
Buybacks and strategic reviews suggested for value protection.
Matthew Sigel from VanEck has raised concerns about the growing risk of capital erosion for Bitcoin treasury companies. The issue stems from firms issuing new shares near or below their Net Asset Value (NAV), which can dilute existing shareholders and devalue the company’s equity. These risks are particularly high in the case of aggressive at-the-market (ATM) equity programs.
Key Safeguards Proposed by VanEck
To protect investor value, Sigel recommends several tactical safeguards:
Pause ATM programs when shares trade under 0.95× NAV, preventing undervalued issuance.
Launch share buybacks to counterbalance dilution and maintain share value.
Conduct strategic reviews of capital allocation policies to ensure long-term alignment with shareholder interests.
These measures aim to maintain confidence in firms holding large Bitcoin reserves while avoiding excessive share dilution.
LATEST: Van Eck's Matthew Sigel warns that Bitcoin treasury companies risk "capital erosion" if they continue equity issuance while trading near NAV.
He recommends safeguards including pausing ATM programs below 0.95x NAV, buybacks, and strategic reviews to prevent… pic.twitter.com/YklRCqPfF1
— Cointelegraph (@Cointelegraph) June 16, 2025
BTC Treasury Firms Need Smarter Capital Tactics
Bitcoin’s price swings add complexity to treasury management. When firms issue equity near NAV, they risk losing the premium that justifies holding Bitcoin on their balance sheets. By applying VanEck’s strategies, companies can build stronger capital structures, especially during market downturns.
Implementing strict NAV-based issuance policies, along with thoughtful buybacks and capital reviews, can safeguard long-term shareholder value—even in volatile markets.
Read Also :
VanEck Warns of Bitcoin Treasury Dilution Risks
Investors Eye $266K From a $10K Arctic Pablo Entry While Artificial Liquid Intelligence and Test Chase Hype
CEX Liquidity Drops as BTC Holds Above $100K
Is Qubetics The Top Crypto Presale Buzz of 2025 with Cardano and SEI’s Surge?
Crypto Ransom Fails: TikToker Released Over Low Funds
The post VanEck Warns of Bitcoin Treasury Dilution Risks appeared first on CoinoMedia.
