NYDIG Executive: Crypto Treasury mNAV Metric "Needs to Be Eliminated"

According to a report by Jinse Finance, 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 both inaccurate and misleading to investors. Cipolaro wrote in a report on Friday: "The industry's definition of 'mNAV' needs to be eliminated and forgotten. The original definition of 'market capitalization to Bitcoin/digital asset value,' or mNAV, is not a useful metric for any purpose." He added that mNAV fails to account for treasury companies that engage in other businesses beyond simply purchasing and holding large amounts of crypto assets, and it also does not properly reflect a company's convertible debt. Traders and investors sometimes use mNAV (also referred to as the net asset value multiple) to assess a company's value and decide when to buy or sell its stock. The method involves comparing crypto holdings to market capitalization. Companies whose crypto asset value exceeds their market capitalization are considered to be trading at a "discount," while those whose market capitalization exceeds their crypto asset value are seen as trading at a "premium."