New York, June 10, 2024 – VanEck's Matthew Sigel warned Bitcoin-buying public companies about potential risks if their stock prices decline. The advice comes as Semler Scientific, a medical technology firm, approaches a critical point.
Semler Scientific, which began buying Bitcoin in May 2024, has accumulated 3,808 BTC, valued at $404.6 million. However, Semler's share price has dropped over 45% this year, mirroring its initial Bitcoin investment.
Sigel noted that Semler's multiple of NAV (mNAV) has fallen below 1x, reaching approximately 0.821x. He suggested companies should pause equity offerings if their stock trades below 0.95x NAV for ten days. He also recommended prioritizing buybacks when Bitcoin appreciates but the equity doesn't reflect that value. Finally, he advised a strategic review, including a merger or spinoff, if the NAV discount persists. (Source: Cointelegraph, June 10, 2024)