Strategy’s Enterprise mNAV Falls Below 1 as MSTR Drops and STRC Hits Record Low of $71.40

Strategy briefly lost the premium investors have long assigned to its bitcoin holdings on Friday, with its enterprise mNAV a metric comparing the company’s total market value to the value of its BTC treasury slipping below 1.0 for the first time.

MSTR common shares fell to a low of $82.16 during Friday’s session before dropping further to around $81.80 in after-hours trading. Bitcoin was trading around $59,560 at the time, trying to stabilize after Thursday’s drop to $58,000.

A reading below 1 on the enterprise mNAV which factors in debt, cash and preferred stock unlike the simpler equity-only version means investors are valuing Strategy’s entire capital structure at less than the bitcoin sitting in its treasury. That is a significant psychological and financial threshold.

The Preferred Share Problem Is Getting Worse

Much of the pressure traces back to Strategy’s heavy reliance on perpetual preferred share issuance to fund bitcoin purchases throughout 2026. That funding model has come with a steep cost roughly $1.2 billion in annual dividend obligations while cash reserves have dipped to around $1.4 billion. The gap between obligations and reserves is shrinking fast.

STRC hit a fresh record low of $71.40 on Friday before recovering to close at $74.72 still nearly 26% below its intended $100 par value. The collapse of STRC below par has created a negative feedback loop, making it harder and more expensive for Strategy to keep issuing shares to fund new bitcoin purchases.

Strategy Is Not the Only One Struggling

The bitcoin treasury copycat model is under pressure across the board. Japan’s Metaplanet is trading at an enterprise mNAV of around 0.9 and David Bailey-backed Nakamoto sits at approximately 0.92. Both are trading below parity just like Strategy.

Strive is one of the few exceptions still holding above 1.0, trading at an enterprise mNAV of around 1.24. Strive adopted a similar preferred share funding model through its SATA perpetual stock but has managed to hold its premium so far.