Michael Saylor’s Strategy flirts again with the danger threshold at which his company is worth less than his Bitcoin
Stock in Michael Saylor’s Bitcoin treasury company, Strategy, was up 1.22% in early trading today, giving the company a brief period of relief. The stock has declined 66% since its high last July, and this morning its “mNAV” (market-to-net asset value)—a technical gauge of whether the company is worth more or less than the Bitcoin it holds—was at 1.02.
If that gauge falls below 1, then technically the company is worth less than the Bitcoin it owns. At that point, the stock would likely be sold off by many investors because there is no point in owning a stock whose value is based on Bitcoin if the stock is worth less than the Bitcoin. mNAV is a measure of the company’s total market cap plus its debt, minus its cash, divided by its total Bitcoin reserve. If that value is worth less than 1 then the case for owning Strategy stock becomes harder to argue.
The stock has been sitting above this danger zone since November.
Already, the market cap of the company is worth less than its Bitcoin. Its market cap was $47 billion today; the Bitcoin held by the company is worth just under $60 billion. That on its own is a perilous position. But if the company’s mNAV falls below 1 then the stock potentially enters a new world of pain.
Fortune contacted the company for comment.
Saylor, as usual
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