VanEck's research director warns that Bitcoin stock companies are approaching net asset value trading, calling for defensive mechanisms.

On June 16, Matthew Sigel, Head of Digital Asset Research at VanEck, warned that at least one Bitcoin inventory company (SMLR) is approaching parity trading with net asset value. He pointed out that continuing to raise funds through market issuance to purchase Bitcoin in this situation would dilute rather than create shareholder value.

Sigel suggested 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 urged the board to take timely action to avoid repeating the mistakes of mining companies that excessively issued stocks and paid high executive compensation.