Strategy’s valuation has fallen below the value of its bitcoin holdings
For years, investors had valued the firm well above its bitcoin holdings, giving Strategy massive flexibility to raise capital as needed — a situation Michael Saylor and team took full advantage of.
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Summary
- Strategy’s enterprise mNAV has fallen below 1, meaning the market now values the company at less than its bitcoin holdings.
- Enterprise mNAV is the market cap of all basic shares outstanding, plus total debt, plus total perpetual preferred stock and USD reserve.
- While some would argue that Strategy is beginning to trade like a closed-end fund, the company still has several capital allocation and financing options that distinguish it from passive investment vehicles.
