Current reserve/liability ratio of Nu's balance sheet

One month ago, it was 6 to 7.2

Now, BTC and PPC value has been cut by half but current market cap of NSR is 7m NBT.
Assuming that outstanding NBT quantity is still 500k NBT,
we have a reserve/liability ratio equal to : (300k + 7m)/500k ~ 14.

Of course, NSR has not a high liquidity, so we would not be able able to sell every NSR at the top price, but we can reasonably think that the ratio has increased significantly.

Good progress over 1 month on this side too.

EDIT: typo

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I don’t think you could get anywhere close to even 0.5M of value out of NSR market cap at this moment. Perhaps almost no value at all. In the case of peg failure, when the NSR selling starts, only the most speculative of buyers would offer to buy, but some shareholders would also panic sell, driving the price into the ground.

This is just my opinion. I could be quite wrong, of course.


That is a bold statement but I think you have a point. In case the peg does not hold and we need to buy back NBTs quickly, if the market does a massive sell off of NSRs, NSR’s value would converge towards 0 and Nu won t be able to extract fresh “cash” from the shares, making NSRs a useless asset in case of an emergency. So in your interpretation, Nu would be able to buy back NBTs only spending “cash” reserve such BTCs or PPCs.
But as pointed out by @tomjoad here, Nu has also a value that is not tied to the peg so even if the peg fails some decent value could be preserved for NSRs.