When the company’s equity trades at a premium to its bitcoin holdings, it can issue new shares at-the-market to accumulate more bitcoin, increasing BTC per share and creating a reflexive flywheel.
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The bitcoin treasury company phenomenon is fascinating, and good for bitcoin.
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The mNAV metric enables investors to determine how much Bitcoin underlies each share, and when a company trades above net asset value, issuing shares can increase Bitcoin per share, whereas trading near or below NAV can lead to shareholder dilution.
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