mNAV’s Growing Influence — and Limitations — in Valuing Bitcoin Treasury Stocks

The metric known as multiple of net asset value, or mNAV, has quickly become a popular way to value publicly traded “bitcoin treasury” companies — firms whose primary strategy is holding bitcoin on their balance sheets. As companies like Strategy (MSTR) continue accumulating BTC, investors rely on mNAV to understand whether these stocks trade at a premium, at parity, or at a discount relative to the underlying bitcoin they hold. But as its use grows, so does criticism that the metric oversimplifies complex capital structures and risks.

mNAV is typically calculated by dividing a company’s enterprise value by the market value of its bitcoin holdings. Because it’s a simple ratio, it lets investors compare bitcoin-heavy firms of different sizes. A reading above 1.0 means the stock trades at a premium to the BTC on its balance sheet, often signaling investor confidence in a firm’s strategy or its ability to raise capital and buy more bitcoin. A value near 1.0 suggests the market sees the stock as a direct proxy for BTC, while readings below 1.0 indicate a discount that some view as an opportunity and others as a warning.

Different versions of mNAV exist because the metric can shift based on assumptions about debt, cash, and share dilution. Basic mNAV uses market cap alone. Diluted mNAV accounts for convertible debt that could increase share count. EV-based mNAV incorporates liabilities and is often viewed as more realistic. As of Nov. 30, Strategy reported an mNAV Basic of 0.856, a diluted mNAV of 0.954, and an EV-based mNAV of 1.105 — showing how varied outcomes can be depending on the approach.

While widely used, mNAV has notable critics. NYDIG’s Greg Cipolaro argues the metric is “woefully deficient” because it often treats convertibles as guaranteed equity conversion and ignores the possibility of repayment in cash, which creates refinancing risk. He also notes that mNAV typically overlooks the value or risk within the operating business itself. Rather than abandoning the metric, he calls for refining it to better reflect real-world balance sheet dynamics.

With more companies adopting bitcoin-forward treasury strategies, mNAV will likely remain an important benchmarking tool. But as capital structures grow more complex, investors are increasingly focused not just on the multiple — but on what that multiple might be missing.