NYDIG Urges Firms to Ditch Misleading mNAV, Focus on NAV
Greg Cipolaro, head of research at NYDIG, has urged crypto firms to ditch the market-cap-to-net-asset-value (mNAV) metric. He warns that mNAV misleads by ignoring non-crypto operations and assuming convertible debt is equity, exaggerating share counts and distorting valuations. Cipolaro cites Strive’s merger with Semler Scientific to illustrate post-merger NAV-per-share adjustments and the risk of mispricing premium or discount levels. He recommends traders focus on net asset value per share, yield generation and operational returns instead of mNAV in isolation. Following this, CryptoQuant has flagged that treasury firms relying on PIPE financing may face stock declines. Traders should therefore reassess valuation methods to avoid pricing risks in crypto equity markets.
Neutral
While the call to abandon the mNAV metric highlights valuation risks and may trigger short-term volatility in crypto equities—especially for firms reliant on PIPE financing—it does not directly affect cryptocurrency prices. Traders reassessing valuation methods could see equity spreads narrow or widen, but token markets are unlikely to move solely on metric preferences. Over the long term, a shift towards net asset value and operational returns may improve transparency and investor confidence, fostering more stable valuations. Thus, the immediate reaction may be mixed among equity traders, while the broader crypto market impact remains neutral.