Strive Asset Management (ASST) has acquired Semler Scientific (SMLR) in an all-stock deal. While historic, the move also drew attention to what may be a problem for investors valuing bitcoin treasury firms.

The acquisition was the first-ever merger between two Digital Asset Treasuries (DATs) holding bitcoin, giving the combined company control of more than 10,900 BTC and increases net asset value (NAV) per share, which DAT investors view as a measure of “yield.”

In a note this week commenting on the acquisition, Greg Cipolaro, Global Head of Research at NYDIG, argued that the commonly used “mNAV” metric, defined as market cap divided by crypto held, should be removed from industry reporting altogether.

“At best, it’s misleading; at worst, it’s disingenuous,” the firm claimed in the note.

NYDIG pointed out that it fails to account for operating businesses or other assets that a DAT may own. Most major bitcoin treasury firms do, indeed, operate businesses that add value.

Second, NYDIG wrote, mNAV often uses “assumed shares outstanding,” which could include convertible debt that hasn’t met conversion conditions.

“Convert holders would demand cash, not shares, in exchange for their debt. This is a much more onerous liability for a DAT than simply issuing shares,” the firm added. “Because convertible debt is essentially volatility harvesting (converts are debt + call options), the DAT is incentivized to maximize its equity volatility.”

Currently, publicly traded bitcoin treasury firms hold over 1 million BTC, and many are now trading below their mNAV, which could suggest more acquisitions are coming in the near future.