Investors have historically placed a higher value on the firm compared to its bitcoin assets, offering Strategy significant leeway to secure funding whenever necessary — a strategy that Michael Saylor and his team effectively utilized.
By James Van Straten|Edited by Stephen Alpher Jun 27, 2026, 12:08 p.m. 2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on Michael Saylor & James Van Straten (CoinDesk)SummaryShow- Strategy's enterprise mNAV has dipped below 1, indicating that the market now values the company less than its bitcoin assets.
- Enterprise mNAV represents the market capitalization of all outstanding shares, plus total debt, preferred stock, and USD reserves.
- While some may suggest that Strategy is starting to resemble a closed-end fund, it still has various capital allocation and financing avenues that set it apart from passive investment vehicles.
Strategy's (MSTR) enterprise multiple to net asset value (mNAV) has officially dropped below 1.
This is a new and unusual scenario for the company led by Michael Saylor, as for many years, investors valued it significantly higher than its bitcoin assets, which allowed Strategy to maintain considerable flexibility in capital raising — a tactic that Saylor and his team capitalized on effectively.
However, with the stock price falling to about $82, approximately 85% lower than its peak of $550 in November 2024, the enterprise value has decreased to around $50.4 billion. In contrast, the value of its bitcoin holdings stands at about $51.1 billion, based on the current price of $60,000 per bitcoin. The market is now valuing the entire company at less than the worth of its bitcoin assets. At this valuation, issuing new shares could be dilutive since it would involve selling equity at a price lower than the value of its assets.
Enterprise mNAV is calculated by dividing the company's enterprise value by its bitcoin reserves, which includes the market cap of all basic shares outstanding, total debt, total perpetual preferred stock, and USD reserves.
This does not imply that the company is unable to issue new shares. However, doing so at the current valuation could attract further criticism, particularly since the last few bitcoin acquisitions have negatively impacted common stockholders, which has led to backlash from the community.
Concerns are rising that Strategy is being valued more like a closed-end fund rather than an operational company. Similar entities, like the Grayscale Bitcoin Trust (prior to its ETF conversion), have historically traded at considerable premiums to their underlying bitcoin assets during periods of high demand, only to later experience persistent discounts when investor sentiment waned. Closed-end funds often face difficulties in resolving these discounts due to the absence of an effective redemption mechanism that aligns the share price with the underlying assets' value.
Nonetheless, unlike a conventional closed-end trust, Strategy possesses multiple options, including issuing debt or equity when beneficial, redeeming or refinancing securities, generating operating cash flows through its software business, and actively managing its capital structure.
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