Strategy Loses Bitcoin Premium as Enterprise mNAV Falls Below 1
Strategy has lost the premium investors once placed on its Bitcoin holdings after its enterprise multiple of Net Asset Value (mNAV) slipped below 1. The decline highlights growing concerns about the company’s financial structure and its ability to sustain its Bitcoin acquisition strategy.
The company’s shares dropped to a low of $82.16 during Friday’s trading session before falling further to around $81.80 in after-hours trading. At the same time, Bitcoin traded near $59,560 after briefly falling to $58,000 a day earlier.
What Enterprise mNAV Means
Unlike the traditional mNAV metric, enterprise mNAV measures a company’s total enterprise value against the value of its Bitcoin holdings. This calculation includes debt, preferred stock, and cash reserves, providing a broader view of the company’s financial position.
An enterprise mNAV below 1 indicates that the market values the entire company at less than the value of the Bitcoin it owns. This suggests weakening investor confidence despite its large cryptocurrency treasury.
Preferred Share Strategy Increases Financial Pressure
Throughout 2026, Strategy has raised billions of dollars by issuing perpetual preferred shares, including STRC, to finance additional Bitcoin purchases.
However, this funding model comes with significant costs. The company now faces approximately $1.2 billion in annual dividend obligations, while its cash reserves have declined to nearly $1.4 billion. The shrinking cash position has increased pressure on the company’s finances.
STRC Shares Hit a Record Low
The financial strain has also affected Strategy’s preferred shares. STRC dropped to a record low of $71.40 before recovering to close at $74.72.
Despite the rebound, the preferred shares remain nearly 26% below their intended $100 par value, reflecting cautious investor sentiment.
Other Bitcoin Treasury Companies Face Similar Challenges
Strategy is not the only Bitcoin treasury company trading below parity. Several firms that adopted similar funding strategies are experiencing comparable pressure.
Japan-based Metaplanet currently trades with an enterprise mNAV of approximately 0.90, while Nakamoto, backed by David Bailey, trades near 0.92.
In contrast, Strive remains one of the few major Bitcoin treasury companies trading above parity. Its enterprise mNAV stands at around 1.24, supported by its SATA perpetual stock funding model.
Market Outlook
The decline in Strategy’s enterprise mNAV highlights growing investor concerns over debt, preferred share obligations, and long-term financing costs. While Bitcoin remains the company’s primary asset, market participants are paying closer attention to the sustainability of treasury strategies that rely heavily on preferred stock issuance.
Future performance will likely depend on Bitcoin’s price recovery, improved liquidity, and the company’s ability to manage its financial obligations while maintaining investor confidence.
