Recently, I've been observing the movements of MicroStrategy (MSTR) and have some thoughts. The valuation of companies holding Bitcoin reserves requires a completely different perspective from traditional stock investments.

Many investors still try to judge companies based on price-to-earnings ratio (PER) or net asset value multiples. However, for companies strategically accumulating Bitcoin, the truly important indicator is the amount of Bitcoin held per share. This is exactly the same concept as traditional per-share free cash flow (FCF per share). If a 15% annual FCF growth rate is considered "outstanding," then considering that Bitcoin has recorded a compound annual growth rate of 60-80% over the past decade, this difference is quite significant.

This is where the concept of mNAV comes into play. It’s the ratio of market capitalization to net asset value, but I see it not just as an evaluation tool, but as a "new PER" that reflects a company's operational strength, fundraising ability, and investor confidence in its Bitcoin strategy. Considering that the P/B ratio of the S&P 500 is currently about 5.4, with a historical range of 1.5 to 5.5, the past average mNAV of MSTR is surprisingly similar.

Why do investors pay a premium for the underlying asset, Bitcoin? There are three reasons. First is trust in growth plans. Companies can expand their portfolios faster than individuals. Second is access to cheap capital—fundraising methods that individual investors can never achieve. Third is operating leverage—growth strategies utilizing convertible bonds and equity financing.

What sets MSTR apart from other Bitcoin reserve companies is precisely this financial strategy. By issuing convertible bonds, it can effectively accumulate Bitcoin at near-zero interest rates. This mechanism is similar to how tech companies grow with leverage, but it’s applied to an asset expected to appreciate by 30-50% annually—Bitcoin. Meanwhile, traditional companies are accumulating fiat currencies that depreciate by 8-10% annually. In ten years, it’s obvious which will deliver greater value to shareholders.

From a technical perspective, MSTR shows strong support near the 200-day moving average, suggesting the current price level is likely a good buying opportunity. The Z-score indicates it’s down to -2 standard deviations, and based on past patterns, a reversion to the mean can be expected. Furthermore, when viewed in Bitcoin terms, MSTR is at one of its lowest levels ever, which is a powerful signal for investors in a low-tax environment.

Some investors might worry that mNAV has shrunk to 1.5 times. But the only thing I care about is whether the amount of Bitcoin held per share is increasing week by week. If fundamentals continue to improve, when investor sentiment shifts, this company could generate significant profits. Ultimately, companies like MSTR are not just buying Bitcoin—they are trying to transform the very valuation standards for stock prices over the next decade.