NYDIG Executive: The mNAV Metric for Crypto Treasuries "Needs to Be Removed"

Jinse Finance reported that Greg Cipolaro, Global Head of Research at NYDIG, stated that the crypto industry should stop using the popular "market to net asset value" (mNAV) metric, as it is neither accurate nor reliable and can easily mislead investors. In a report released on Friday, Cipolaro wrote: "The industry's definition of 'mNAV' needs to be deleted and forgotten. The original definition of 'market capitalization to bitcoin/digital asset value', that is, mNAV, is not a useful metric for any purpose." He added that mNAV does not take into account treasury companies that engage in other businesses besides buying and holding large amounts of crypto assets, nor does it properly reflect a company's convertible debt. Traders and investors sometimes use mNAV (also known as net asset value multiple) to assess a company's value and decide when to buy or sell its stock, by comparing crypto holdings to market capitalization. Companies whose crypto asset value exceeds their own market capitalization are considered "discount" trades, while those whose market capitalization is greater than their crypto asset value are seen as "premium" trades.