What is mNAV?
The two definitions of mNAV — market-cap and enterprise-value — with a worked example.
mNAV — short for "multiple of net asset value" — is the single number that tells you whether the market is paying a premium or a discount for Strategy's bitcoin. If you only learn one MSTR metric, learn this one.
The two definitions
Confusingly, "mNAV" is used for two related but different ratios. Both compare the value of the company to the value of the bitcoin it holds, but they draw the boundary of "the company" in different places.
1. Market-cap mNAV
This divides the equity market capitalization by the market value of the bitcoin held. It answers: for every $1 of bitcoin Strategy owns, how many dollars is the stock worth?
2. Enterprise-value mNAV
This is stricter. It adds debt and the liquidation value of preferred stock to the market cap, then subtracts cash, before dividing by BTC NAV. It accounts for the fact that debt holders and preferred holders have a claim ahead of common shareholders.
A worked example
Say Strategy holds about 847,000 BTC at $100,000 each — that's roughly $85B of bitcoin NAV. If the market cap is $127B, market-cap mNAV is 1.5×: the market values the equity at 1.5 times the bitcoin behind it. Add roughly $6.75B of debt and $15B of preferreds, subtract cash, and enterprise mNAV climbs higher still.
Why the premium exists at all
A rational buyer pays more than $1 for $1 of bitcoin because Strategy can raise capital at that premium and buy more bitcoin per share than existing holders gave up — an accretive flywheel. The premium is the market pricing in the expectation that this continues.
When mNAV compresses toward 1.0, that expectation is fading. Below 1.0, the market is saying the equity is worth less than the bitcoin it sits on.
Ready to put numbers on it? Open the calculator →