Warning to companies buying Bitcoin from VanEck manager

The Bitcoin purchase policy initiated by Strategy in 2020 has turned into a small frenzy with the arrival of 2024, as many companies, from Metaplanet to Semler Scientific, and from GameStop to Trump Media, have also added Bitcoin to their balance sheets.

"Existing value will be lost"

Sigel cited the example of companies purchasing Bitcoin through ATMs, referring to it as an At-the-Market Offering, where shares are sold at the current market price, and stated the following:

"Some companies are raising capital to buy Bitcoin through ATM programs. However, a risk has started to emerge here. If the shares are trading close to net asset value, an increase in share issuance will further pull down the value. Therefore, instead of creating additional value, the existing value is lost."

Sigel stated that Semler Scientific is in danger in this way, saying, "A company in this situation or approaching it should not make any new stock sales."

The VanEck manager clearly stated that selling is detrimental when the stock price is low and that the stock price must be strong for the sale of shares.

Semler stock dropped 5% but Bitcoin increased.

The situation at Semler, one of the companies that Sigel says "there is danger," does not go unnoticed. Semler, which bought Bitcoin in May 2024, holds 3,808 BTC worth $405 million. Since that time, while Bitcoin has risen significantly, Semler's shares have experienced a sharp decline of 50%.

"They have to leave it somewhere"

While the company's market value is around 430 million dollars, the total value of its BTC holdings is around 405 million dollars... Here, the danger mentioned by Sigel is clearly visible. Sigel believes that companies like Semler need to be careful and that they should stop taking on debt through stock sales.

"Companies like this should also consider doing stock buybacks when Bitcoin appreciates in value. They could even merge with another company, spin off their Bitcoin divisions into a separate company, or halt acquisitions altogether. Additionally, the salaries and bonuses given to executives should be determined based on the net value per share, not on how much BTC the company holds."

Published: June 16, 2025 12:33Last Updated: June 16, 2025 12:39