NYDIG, led by Greg Cipolaro, urges Bitcoin treasury companies to rethink their reliance on the mNAV metric, pointing out its limitations in a June 2025 research release.
The call for alternative valuation metrics by NYDIG highlights potential risks for Bitcoin treasuries, impacting market valuations and the ability to raise funds.
NYDIG Urges Rethink on Bitcoin Valuation Metrics
NYDIG and its research head Greg Cipolaro have called upon Bitcoin treasury companies to reassess their reliance on the mNAV metric for valuation. This appeal stems from Cipolaro’s research published on June 6, 2025, highlighting significant shortcomings and potential risks.
Cipolaro argues that relying solely on mNAV is inefficient for evaluating firms, emphasizing the importance of premium trading relative to net assets. NYDIG’s concern underscores a broader consensus among analysts, urging for more robust financial analysis models within the industry.
Greg Cipolaro, Global Head of Research, NYDIG, “The most important metric for a bitcoin treasury is the premium it trades at relative to its underlying net assets, including any operating company. … mNAV alone is woefully deficient for evaluating these firms.”
Billions in Treasury Investments at Stake
The call for re-evaluation of mNAV impacts billions in Bitcoin treasury investments, as capital raising becomes riskier. Firms struggle with dipping mNAV premiums, affecting their ability to secure favorable terms.
Analysts warn of potential market turbulence if companies do not revise valuation strategies. Additionally, there’s a risk of reclassification under U.S. Investment Company Act regulations, which could threaten passive inflows and index eligibility.
MicroStrategy’s Strategy Highlights mNAV Challenges
Similar precedents exist, like MicroStrategy’s Bitcoin accumulation strategy, which saw mNAV compression diminish capital-raising ability. Past declines highlight the importance of assessing mNAV’s limitations.
Expert insights suggest firms may face challenges if they do not adapt. Data and past trends highlight the necessity for innovative financial models to maintain market stability and attract investment effectively.
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