Bitcoin Treasury Strategies Face Growing Challenges Amid Market Risks
VanEck warns that Bitcoin-buying firms should consider stopping their strategies if their stock prices fall near or below the net asset value, citing Semler Scientific's recent decline as a cautionary example. The firm has bought significant Bitcoin holdings, but its stock has dropped sharply, highlighting risks associated with equity issuance and Bitcoin price fluctuations. Experts advise companies to adopt safeguards, prioritize buybacks, and consider strategic reviews if NAV discounts persist, emphasizing disciplined management and alignment of executive compensation with NAV growth.