VanEck Matthew Sigel Warns Bitcoin Treasury Firms of Capital Erosion Risks

Matthew Sigel, Head of Digital Assets Research at VanEck, has issued a caution to publicly traded Bitcoin treasury companies, warning that continued equity issuance while shares trade near net asset value (NAV) could lead to significant capital erosion.

Sigel highlighted the risk of shareholder dilution under current market conditions and urged companies to implement safeguards. Among his recommendations: suspending at-the-market (ATM) equity programs when share prices fall below 0.95x NAV, initiating stock buybacks, and conducting strategic reviews to protect long-term shareholder value.

“Without appropriate checks, these capital raises risk destroying value for existing investors,” Sigel noted.

His comments come amid growing scrutiny of financial practices among crypto-heavy public firms, particularly as market volatility challenges the sustainability of aggressive capital-raising strategies.