"mNAV indicator not applicable to digital asset finance companies…increases investor confusion"

Recently, poor mNAV (net asset value ratio) metrics at multiple digital asset finance companies (DATs) have come under scrutiny, and some are calling for the mNAV metric to be abolished.

On the 29th (Korean time), according to Cointelegraph, a cryptocurrency-focused outlet, Greg Cipolaro, Head of Global Research at New York Digital Investment Group (NYDIG), said in a report, "The mNAV metric as defined by the industry does not fit finance companies that hold digital assets such as Bitcoin (BTC)," and argued, "The metric should be discarded to prevent misleading investors."

Cipolaro cited problems with mNAV such as failing to reflect business value beyond financial assets and errors in calculating convertible bonds. He emphasized that instead of mNAV, one should look at net asset value (NAV), asset growth per share, and the ability to generate earnings. He explained, "If a digital asset finance company can generate earnings, it can issue at a premium to net asset value," adding, "It is important to look at the company's intrinsic value."