MicroStrategy's mNAV drops below 1, crossing key BTC purchase threshold

Shares of MicroStrategy (MSTR) fell to $81.8 in after-hours trading, causing the company's mNAV—a metric comparing its total market value to the value of its Bitcoin holdings—to drop below 1. This indicates that investors are valuing the company at less than the Bitcoin it holds. Other companies with similar Bitcoin acquisition strategies, Metaplanet and Nakamoto, also have mNAVs below 1, at 0.9 and 0.92, respectively. Theoretically, MicroStrategy's policy when its mNAV falls below 1 is to halt Bitcoin purchases funded by stock issuance, use cash on hand to buy back its own shares, and increase the dividend rate on its preferred stock (STRC).