NYDIG Executive: The encryption treasury mNAV metric "needs to be removed"

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According to CoinWorld, NYDIG's global research head Greg Cipolaro stated that the cryptocurrency 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 deleted and forgotten. 'Market capitalization to Bitcoin/digital asset value', which is the original definition of 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 cryptocurrency and fails to accurately 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 cryptocurrency holdings with market capitalization. Companies with cryptocurrency assets valued higher than their own market capitalization are considered to be trading at a "discount," while companies with market capitalization greater than their cryptocurrency asset value are viewed as trading at a "premium."

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