Strategy's mNAV Plunges Two-Thirds Over Past Two Years

Michael Saylor's Strategy has seen its multiple-to-Net Asset Value (mNAV) decline by two-thirds over the past two years, from a peak of 2x to a current level of 0.68x. This metric measures how much investors are willing to pay for the company's common stock compared to its $BTC holdings.

In July 2024, Strategy's shares commanded a premium to their $BTC pile, but as that premium flipped to a discount, the company redefined the term mNAV twice in an attempt to keep it above 1x. The latest iteration is holding on by a thread, with a reading of 1.03x yesterday.

The company's $BTC holdings have grown significantly over the past two years, with Strategy now holding 843,775 BTC at an average cost of $75,476, which is uncomfortably higher than the current market price below $65,000.

Strategy's redefinition of mNAV has not stopped its shares from crashing, with the stock price declining 38% year to date and 76% over the past 12 months. The company has also sold $14 billion in MSTR under 2.5x mNAV, despite promising shareholders it wouldn't dilute MSTR shareholders below that level.