Strategy’s mNAV falls to 19-month low as BTC outperforms
The basic multiple-to-net asset value (mNAV) per share of Strategy has fallen to a 19-month low. At just 1.21x,* the company’s common stock hasn’t traded at a worse basic premium to its bitcoin (BTC) holdings since late February 2024. Investors overwhelmingly value shares of MSTR based on the company’s BTC treasury and its prospects to accrete additional BTC. Strategy currently owns $78 billion worth of BTC but it enjoys a $94 billion market capitalization. It also made less than $350 million in gross profit over the past 12 months — in other words, not much relative to its $16 billion premium to BTC. Indeed, the vast majority of that $16 billion in extra valuation is down to optimism about founder Michael Saylor’s efforts to sell products appealing to dividend and bond investors. Unfortunately, that optimism has been waning. As recently as November, MSTR traded as high as 3.4x or 240% above the value of its BTC holdings. Today, MSTR trades at a mere 1.2...