NAV Assessment of Encrypted US Stocks: An Investment Guide in the Era of Coin-Stock Correlation

The recent launch of the encryption bull market has sparked a strong response in the U.S. stock market. As more companies adopt "encryption asset reserve strategies," investors need a reliable indicator to evaluate the value of these stocks. In this context, the traditional financial metric of net asset value (NAV) has gained new significance.

The essence of NAV is to answer the question "How much is a company's stock worth per share?" Its calculation method is quite straightforward: the value obtained by subtracting liabilities from assets is divided by the total share capital. This metric is particularly suitable for asset-driven companies, such as real estate companies and investment funds.

When NAV is applied to the encryption of US stocks, its core function becomes to measure the impact of the company's held encryption assets on the stock value. This brings two significant changes: the volatility of NAV has greatly increased, and at the same time, the value of NAV is "amplified" by encryption assets.

Taking a well-known technology company as an example, as of July 22, the company held 607,770 bitcoins, with a total value of approximately $72 billion. Considering other assets and liabilities, the company's NAV per share is about $248. However, its actual stock price is $426, reflecting the market's optimistic expectations for the future appreciation of bitcoin.

Besides NAV, the market value of mNAV( compared to the net value of encryption assets ) is another important indicator. mNAV can better reveal the market's expectations for the company's encryption assets and reflect the premium or discount situation of investors. A mNAV greater than 1 indicates that the market has a premium on the value of the company's encryption assets, while the opposite implies a lack of confidence.

Currently, the mNAV differences among different companies are significant. Some companies' market value far exceeds the value of their encryption asset holdings, which may pose an overestimation risk. Meanwhile, some companies have relatively low mNAV with a more moderate premium.

The "reflexive flywheel" effect is hidden behind this stock-coin linkage. The company buys cryptocurrency through financing, pushing up NAV and mNAV, attracting more investors, leading to a rise in stock prices, which in turn promotes more financing and cryptocurrency purchases, forming a positive feedback loop. However, this process also contains risks; once the cryptocurrency price significantly corrects or regulatory tightening occurs, it may trigger a "death spiral."

For investors, indicators such as NAV and mNAV are useful analytical tools, but they should not be overly relied upon. When evaluating encryption US stocks, it is also necessary to consider various factors such as the macro trends of cryptocurrencies, the company's debt levels, and growth prospects to make a more comprehensive and rational investment decision. In this new cycle where opportunities and risks coexist, maintaining a clear mind is crucial.