Strategy’s mNAV Falls Below 1, Below Its Bitcoin Holdings Value

Strategy’s enterprise multiple to net asset value, or mNAV, has dropped below 1 for the first time. Investors had valued the firm above its bitcoin holdings for years, giving Michael Saylor’s team room to raise capital freely, a setup the company leaned on heavily.

That’s flipped now. With MSTR stock around $82, roughly 85% below its November 2024 peak, enterprise value sits near $50.4 billion. Bitcoin holdings are worth about $51.1 billion at current prices near $60,000.

The market is pricing the whole company below the value of the bitcoin it actually owns. At this level, issuing new shares becomes dilutive since it means selling equity for less than the underlying assets are worth.

Strategy Risks Being Valued Like A Closed-End Fund

Strategy can still issue shares, but doing so now would likely draw more backlash, especially after recent bitcoin purchases already diluted common stockholders. The bigger worry is Strategy trading more like a closed end fund than an operating company, similar to how Grayscale Bitcoin Trust once swung from premiums to steep discounts. Unlike a typical trust, though, Strategy has more tools available, including debt, equity issuance, refinancing, and cash flow from its software business.