mNAV has become shorthand for valuation of bitcoin treasury stocks, but a growing number of analysts warn that it oversimplifies the story.
The rise of mNAV in bitcoin finance
In recent years, a class of publicly traded companies has emerged whose primary value proposition is holding bitcoin on their balance sheets. These “bitcoin treasures,” including companies like Strategy (MSTR), formerly known as MicroStrategy, have sparked debate among investors, especially as their shares trade at levels disconnected from the value of the BTC they hold.
The most common valuation criterion is the multiple of the net asset value (mNAV). It compares the enterprise value (EV) of a company to the market value of its bitcoin holdings, giving investors a way to assess how much of a premium or discount the market is assigning to its treasury.
mNAV ≈ enterprise value ÷ value of bitcoin holdings
The metric is now widely followed. Strategy publishes its own mNAV on its investor site, while third-party panels like BitcoinTreasuries.net track various mNAV figures across multiple companies.
How mNAV works
A basic mNAV calculation involves:
- Estimate the market value of the company’s BTC stack using current prices.
- Calculation of company value: market capitalization + debt – cash equivalents.
- Dividing EV by BTC holdings to get the multiple.
This EV-based approach represents only one way to calculate mNAV. Depending on how analysts treat debt, cash and potential share dilution, the ratio can change significantly, which is why the industry now tracks multiple variants.
A reading above 1.0 implies a premium, while a reading below 1.0 suggests a discount, potentially a red flag or opportunity, depending on the investor’s outlook.
While Strategy reports an enterprise value-based mNAV on its investor site, third-party data providers publish multiple versions of the metric, each reflecting different assumptions about capital structure and share count.
How to read mNAV: premium, parity, discount
Once calculated, mNAV gives an idea of how markets value a company’s bitcoin exposure:
- mNAV > 1:
The stock trades at a premium to the value of its bitcoin. Investors may be placing additional value on access to the capital market, potential for future BTC accumulation, or an operating business. - mNAV ≈ 1:
The company is trading at a price close to the value of its BTC holdings. This suggests that it is being valued as a direct proxy for bitcoin, with little added or subtracted by other factors. - mNAV < 1:
The stock is trading at a discount to its BTC holdings, a sign that investors are not willing to pay even full price for the coins on the balance sheet. This may raise concerns about execution or capital structure, but some value investors see it as a buying opportunity.
Because mNAV is a dimensionless ratio, it allows comparisons between companies regardless of treasury size or number of shares. It also reflects broader market sentiment about whether investors trust the company’s overall strategy.
Understand the variants: basic, diluted and EV mNAV
Some dashboards, for example BitcoinTreasuries.net, now show multiple mNAV variants:
- mNAV Basic
A simple ratio using current market capitalization and BTC holdings, without adjustments for future share dilution. - diluted mNAV
Adjusts for convertible notes and other instruments by increasing the share count. This gives a more conservative view of what shareholders “really” own. - EV mNAV
It uses enterprise value instead of market capitalization to incorporate debt and other liabilities. This version is especially useful when a company, such as Strategy, has issued long-term convertibles and has substantial liabilities.
As of November 30, the values reported by Strategy were:
- Basic mNAV: 0.856
- Diluted mNAV: 0.954
- EV mNAV: 1,105
That means equity investors may be paying a little less than $1 per dollar of BTC on a diluted basis, while the broader market, including debt holders, still values the company above its BTC holdings.
Why is it important
mNAV has real implications for capital market activity. A company trading above 1.0 can raise equity or debt on favorable terms and buy more bitcoin, effectively increasing its exposure. When mNAV drops, that manual becomes more difficult or more dilutive.
Because of that feedback loop, mNAV influences how companies approach financing and how investors evaluate the viability of bitcoin-first business models.
NYDIG criticism
In a June 2025 blog post, Greg Cipolaro, global head of research at NYDIG, offered a harsh criticism of mNAV as it is commonly used. He argued that the metric is “woefully deficient” because it does not reflect key balance sheet risks, especially assumptions about convertible bonds.
Many analysts, Cipolaro noted, treat these convertibles as if they were guaranteed to convert into stocks. But if market triggers are not met, the notes may have to be repaid in cash, creating refinancing risk that mNAV fails to capture.
Cipolaro also noted that mNAV often ignores the value of the operating company (opco), which could be a source of hidden risks or advantages. Instead of scrapping the metric, he suggested refining it to incorporate more robust models of capital structure and deal valuation.
The road ahead
mNAV remains the most cited metric for comparing bitcoin treasury stocks, but reviews like Cipolaro’s suggest it may need an update. Investors are increasingly demanding more transparency and standardization, especially as more companies adopt forward bitcoin treasury strategies.
With bitcoin treasuries growing in number and complexity, the question is no longer simply “what is the multiple?” but “what’s really in it?”
