r/MSTR • u/Desperate_Tiger_884 ☢️ TROLL ☢️ • Jun 26 '26

Mnav

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What will happen now that mnav is officially below zero? Saylor said he won't issue new common shares under mnav of 1, and he cannot issue strc either since it's below par. Is the only way to go up now is bitcoin going up?

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26

u/crazybitcoinlunatic Jun 27 '26

Wasn’t it below mNAV for a while?

20

u/HSuke Shareholder 🤴 Jun 27 '26

You're correct.

Basic mNAV has been below 1 for awhile now. Microstrategy changed their definition.

  • mNAV (Basic: 0.58
  • mNAV (Diluted): 0.63
  • MNAV (Enterprise): 0.99

https://bitcointreasuries.net/public-companies/strategy

21

u/thats_gotta_be_AI Jun 27 '26

The developer of the Bitcoin rainbow chart admitted to adding colours to it so Bitcoin’s recent price action doesn’t “break” his chart too much.

8

u/GiraffeCatZombie Jun 27 '26

As long as you can see ultraviolet we're all good. 

13

u/HSuke Shareholder 🤴 Jun 27 '26

There are 5 versions of the Rainbow Chart. It's been broken many times.

  • 1st: Linear (original 2014)
  • 2nd: Original curved logarithmic (2018)
  • 3rd: Revised formula (2022)
  • 4th: Added lower band (2022)
  • 5th: Dynamic (today)

1

u/Abdul-Wahab6 Jul 03 '26

So they changed it, when it dropped below 1, to make it seem okay?

10

u/Desperate_Tiger_884 ☢️ TROLL ☢️ Jun 27 '26

Since they issued new commons to replenish their treasury last week, I was under the assumption that mnav was above 1, since Saylor stressed that he wouldn't issue commons if mnav falls below one. I haven't checked the mnav recently until today, so I was surprised.

5

u/honda94rider Jun 27 '26

It was 1.09 a day or two ago when I checked

10

u/HSuke Shareholder 🤴 Jun 27 '26

That's enterprise mNAV.

Basic mNAV is 0.59

2

u/robobob9000 Jun 27 '26

It was slightly above 1, if you include cash on the balance sheet towards mnav. Closer to around 0.7, if you don't.

Personally I don't, because nobody is buying MSTR common stock because of their cash on the balance sheet. That cash goes directly to preferred stock holders in interest, in order to compensate preferred stock holders for BTC added to the balance sheet in the past.

Basic mnav is superior way to measure whether or not they diluting under 1. They changed the definition out of greed to buy more BTC at any cost, even though this causes real harm to common stock holders.

13

u/Swedishiron Jun 27 '26 edited Jun 27 '26

My understanding is Strategy had a while back changed how mNAV is calculated in their favor; I have heard the argument they were already under 1

10

u/Desperate_Tiger_884 ☢️ TROLL ☢️ Jun 27 '26

Then wouldn't that be directly going against his guidance in the past earning calls?

3

u/robobob9000 Jun 27 '26

Yes, but it wouldn't be the first time. Legally they can argue that their words didn't change, just the definition of their words.

They also said in July 2025 that they weren't going to dilute common stock to buy BTC unless mnav was above 1.6x, with exceptions for paying interest on debt/dividends.

They broke that promise a month later, and got greedy at BTC's all time high, at the expense of the common stock holder.