Strategy’s Corporate mNAV Falls Below 1, Erasing Bitcoin Premium

Strategy’s corporate mNAV has fallen below 1 for the first time, wiping out the premium investors had assigned to its Bitcoin holdings.

The Block reported on June 26 that Strategy’s common stock, MSTR, fell to as low as $82.16 during the session and slipped further to about $81.80 in after-hours trading. The drop pushed the company’s corporate mNAV below 1. The metric compares Strategy’s total market value with the value of its Bitcoin holdings. A reading below 1 means investors are valuing the company’s overall capital structure at less than the value of the Bitcoin it holds.

Unlike traditional mNAV, which compares equity market capitalization with the value of digital-asset holdings, Strategy’s corporate mNAV also incorporates debt, cash and preferred stock.

Strategy has funded most of its Bitcoin purchases this year through the issuance of perpetual preferred shares, including STRC. CryptoQuant, an on-chain data platform, said the annual dividend obligations tied to those preferred shares amount to about $1.2 billion, while the company’s cash holdings have fallen to about $1.4 billion.

That structure is creating a vicious cycle that is pressuring STRC. The preferred shares fell to a record low of $71.40 during trading on June 26 before closing at $74.72. That is about 26% below their $100 par value.

Other companies using similar strategies are under similar pressure. Metaplanet’s corporate mNAV is about 0.9, while Nakamoto’s is about 0.92. Strive, which is pursuing a similar strategy through the issuance of SATA perpetual preferred shares, is one of the few major Bitcoin treasury companies still above 1, with a corporate mNAV of about 1.24.