Strategy mNAV falls below 1, market valuation is already lower than its Bitcoin holdings value.

BlockBeats news, June 27 — Strategy’s (MSTR) mNAV has fallen below 1, meaning the market currently values the company lower than the value of the Bitcoin it holds. This is unusual for Michael Saylor-led Strategy. For years, investors have assigned Strategy a valuation higher than the value of its Bitcoin holdings, enabling it to flexibly raise capital when needed, and Saylor and his team have fully taken advantage of this.

Currently, Strategy’s stock price has fallen to around $82, down about 85% from its historical high in November 2024. Its enterprise value has dropped to about $50.4 billion. At the same time, with Bitcoin priced at around $60,000, the value of Strategy’s Bitcoin holdings is about $51.1 billion. This means the market’s valuation of the entire company is now lower than the value of the Bitcoin it holds.

At the current valuation level, issuing new shares by Strategy would be dilutive, because the company is effectively selling equity at a price below the value of the underlying assets. While this does not mean Strategy cannot continue to issue new shares, raising funds at the current valuation level could attract more criticism. Previously, Strategy’s recent Bitcoin purchases have diluted common shareholders and sparked opposition within the community.

Market concerns are growing that Strategy is increasingly looking like a closed-end fund rather than an operating company. Similar instruments usually trade at a premium to their underlying Bitcoin holdings when demand is strong, but may remain at a long-term discount once investor sentiment weakens. However, unlike traditional closed-end trusts, Strategy still has multiple tools at its disposal, including issuing debt or equity when it benefits shareholders, redeeming or refinancing securities, generating operating cash flow from its software business, and actively managing its capital structure.