VanEck Director Daniel Sigel expressed concerns regarding how some Bitcoin-holding firms manage their assets. He warned about the risks associated with share issuance and decreasing shareholder value.
Risks of Value Erosion for BTC Treasury Firms
Sigel points out that historically, no public Bitcoin-holding company has traded below its net asset value (NAV). However, he notes that at least one company is approaching that line, increasing the risks of shareholder dilution.
Protective Measures for BTC-Focused Firms
Sigel proposes a series of safeguards for boards and investors to avoid mistakes seen in the crypto mining sector. He recommends:
Need for Action to Protect Shareholders
Sigel emphasizes the need for companies to act now while there is still room for maneuver to preserve value and protect shareholder interests. For instance, he advocates for halting share issuance if the stock price remains below 0.95x NAV for over 10 trading sessions.
Daniel Sigel stresses the importance of precautionary measures to help BTC-focused companies maintain their value and safeguard shareholder interests against potential risks.
