Michael Saylor says mNAV is just one metric in Strategy valuation

Michael Saylor, Executive Chairman of Strategy, told investors at the BTC Prague conference that the multiple‑to‑net asset value (mNAV) metric should be viewed as just one of several valuation frameworks, not a definitive gauge of the company’s health [1]. He also defended recent equity issuances as non‑dilutive, saying shareholders receive tangible assets in exchange.

Key takeaways

• Saylor defines mNAV as market cap adjusted for debt, preferred equity and convertible debt, then divided by Bitcoin holdings [1].
• He argues that issuing equity for cash or Bitcoin does not dilute shareholders because they receive a real asset [1].
• Critics note that Strategy’s “NAV” is not a true net asset value and that the metric’s definition is complex and contested [2].
• Strategy’s mNAV has hovered around 1×, a level that, if fallen below, could pressure the stock’s valuation relative to its Bitcoin reserve [3].

Saylor’s definition and defense of mNAV

At BTC Prague, Saylor explained that mNAV can be calculated by adding the notional value of convertible debt, common equity and preferred equity, then dividing by the company’s Bitcoin holdings [1]. He emphasized that this is only one lens, adding that gross assets per share or net assets per share—metrics that may exclude preferred equity or convertible debt—are equally valid [1]. The debate was sparked by Jack Mallers of Twenty One Capital, who asked whether out‑of‑the‑money convertibles should be included; Strategy currently holds about $6.7 billion of such debt, which is out of the money at the $115 share price [1].

Saylor also contested the notion that equity issuances are inherently dilutive. He argued that when a company raises cash (or Bitcoin) by issuing shares, shareholders receive a tangible asset, strengthening the balance sheet and expanding the capital base [1]. He cited a recent $100 million addition to Strategy’s U.S. dollar reserves, bringing total cash to roughly $1 billion, as an example of value‑creating capital raising [1].

Criticism and the complexity of mNAV

Other observers highlight that Strategy’s “NAV” is not a true net asset value, noting that the term is traditionally reserved for regulated funds and that the company itself warns the label is “not equivalent to ‘net asset value’” [2]. Protos reported that Saylor’s explanation stretched nearly seven minutes and required multiple paragraphs, suggesting the metric’s definition is convoluted [2]. The basic mNAV—market cap divided by Bitcoin value—has slipped below 1× after months of trading at 2‑4×, while a more generous enterprise‑value version hovers just above that threshold [2].

Fortune’s January report placed Strategy’s mNAV at 1.02, indicating the company’s market cap ($47 billion) is slightly below the Bitcoin reserve value (just under $60 billion) [3]. The article warns that a sustained drop below 1× could make the stock less attractive, as investors would own a company whose equity is worth less than its underlying asset [3].