TheBlock
Strategy's enterprise mNAV has slipped below 1.0, with the company's STRC preferred shares briefly hitting a record low of $71.40, roughly 25% below par. The move wipes out the premium institutional investors had paid for indirect bitcoin exposure through the largest corporate BTC treasury vehicle.
Why it matters
An mNAV below 1.0 means the market values Strategy's operating business at less than zero, pricing the bitcoin on the balance sheet as if it were a liability rather than a reserve asset. Metaplanet and Nakamoto, the next tier of corporate BTC treasuries, also trade below 1.0 enterprise mNAV. Strive remains the lone holdout above parity among the major listed bitcoin treasuries.
Market impact
The compression closes the arbitrage that has funded Strategy's long-running accumulation program. When the trade works, Strategy sells equity above NAV and uses the proceeds to buy bitcoin, pushing its holdings higher without dilution. Below 1.0, every share issued destroys value for existing holders, and the company has fewer clean options to keep buying without an explicit equity raise at a discount. Watch the next STRC dividend reset and any pause in treasury additions as the next data points.
Frequently asked questions
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What is Strategy's mNAV and why does it matter?
mNAV is market cap plus net debt divided by the value of bitcoin held. Above 1.0, the market pays a premium for indirect BTC exposure. Below 1.0, the wrapper is worth less than the bitcoin inside it.
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What happened to STRC preferred shares?
STRC briefly hit a record low of $71.40, about 25% below its $100 par value, dragging Strategy's enterprise mNAV under 1.0 for the first time.
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Which other bitcoin treasury companies trade below mNAV of 1?
Metaplanet and Nakamoto also trade below 1.0 enterprise mNAV. Strive is the only major listed bitcoin treasury holding above parity.
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How does mNAV compression affect Strategy's bitcoin buying?
Strategy funded accumulation by selling equity above NAV to buy BTC. Below 1.0, new share issuance dilutes holders, limiting the company's cleanest path to keep adding to its treasury.
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What should investors watch next from Strategy?
The next STRC dividend reset, any pause in bitcoin purchases, and whether the company shifts to alternative funding like convertibles or ATM raises at a discount.
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