Reference note · Stylus Digital
mNAV: definitions and limitations
Valuation conventions for Strategy’s bitcoin holdings.
mNAV means a multiple of net asset value. In discussions of Strategy, formerly MicroStrategy (MSTR), it describes a stock or enterprise valuation relative to its bitcoin backing. The useful question is not just “what is the multiple?” but “which claims and assets are included?”
Definition and calculation
A simple starting point is equity market capitalisation ÷ gross value of bitcoin held. In an invented example, $12 billion of equity value divided by $10 billion of bitcoin gives 1.2×. Relative to that gross bitcoin value, the premium is (1.2 − 1) × 100 = 20%.
This simple ratio ignores debt, preferred stock, cash and other assets. It does not measure what remains for common shareholders after senior claims. A value below 1× therefore does not, by itself, mean the common shares trade below their net asset value.
Why mNAV figures can disagree
Some comparisons use enterprise value; others use common equity against net bitcoin backing. Share dilution and convertible securities also affect the calculation. Strategy’s current definition uses its share price relative to bitcoin per share in dollar terms after specified senior claims and USD assets. The company distinguishes this metric from traditional net asset value. Check its metric definitions alongside any quoted number.
Historical comparisons require a consistent definition, share count basis and valuation time. Bitcoin trades outside equity-market hours, while balance-sheet disclosures arrive at discrete times. Mixing a fresh bitcoin quote with an old share count can produce a deceptively precise result.
A premium is not an arbitrage guarantee
A premium can persist or widen. A discount can coexist with financing obligations, dilution and business risks. A trade involving MSTR and bitcoin also has two different exposures: the stock is not a redeemable claim for a fixed amount of bitcoin. Borrow costs, hedge sizing, execution and changes in their relationship matter.
How the Stylus monitor differs
The MSTR and bitcoin relative-value monitor labels its data date and compares actual MSTR market capitalisation with a model-implied value. Its model estimates the historical relationship between MSTR market capitalisation and bitcoin holdings; the difference from that fitted value drives a research signal.
The downloadable series covers strategy returns and diagnostics, not a daily official mNAV series. See Robert Carver’s original research for the method and its disclosures.