Transaction Overview: 1,000 Bitcoin at the Core of Treasury
Know Labs, Inc. (NYSE American: KNW) announced an agreement with Goldeneye 1995 LLC and Ripple Chief Risk Officer Greg Kidd to acquire a controlling interest in the Company. Under the terms, the buyer will acquire shares of Know Labs’ common stock by exchanging a total value of 1,000 Bitcoin plus a cash amount designated to pay down existing debt, redeem outstanding preferred equity, and provide additional working capital. Each share is priced at $0.335. The Bitcoin will serve as the central element of the Company’s treasury strategy, giving investors direct exposure to Bitcoin.
Leadership Changes and Strategic Vision
Upon completion, Greg Kidd will become Chief Executive Officer and Chairman of the Board, while founder Ron Erickson will serve as Vice Chairman. “I’m thrilled to deploy a Bitcoin treasury strategy with the support of a forward-looking organization like Know Labs at a time when market and regulatory conditions are particularly favorable,” said Mr. Kidd. “We believe this approach will generate sustainable growth and long-term shareholder value.” Mr. Erickson commented: “Partnering with Greg Kidd marks a pivotal next chapter for Know Labs. We look forward to continuing our research in non-invasive medical technology. Greg’s visionary leadership positions Know Labs for a bold future.”
Financial Metrics: Introducing the mNAV Multiple
Once Bitcoin becomes the primary asset on Know Labs’ balance sheet, management will adopt the multiple of net asset value (mNAV) metric to assess the premium investors place on the Company’s market value relative to its Bitcoin holdings. Based on a market cap of $128 million and a Bitcoin price of $105,000, the estimated entry mNAV multiple is 1.22x, with Bitcoin accounting for approximately 82% of the total market capitalization at closing. This metric is widely used by Bitcoin-heavy corporate treasuries such as MicroStrategy.
Global Trend: Accelerating Corporate Bitcoin Treasury Adoption
The adoption of Bitcoin as a treasury reserve asset has dramatically increased over the last year, expanding globally. To date, 225 companies and other entities hold Bitcoin on their balance sheets. A recent example is Norwegian Block Exchange (NBX), a leading Nordic cryptocurrency exchange and digital asset platform, which announced on June 2 that it had added Bitcoin to its balance sheet, becoming the first publicly listed company in Norway to adopt a Bitcoin treasury strategy. “NBX will not sell this Bitcoin or go short in any form,” stated the company. “With reference to the latest POA notice with LDA capital, NBX will also use proceeds to buy additional Bitcoin.”