mNAV, the ratio of a crypto treasury company’s share price to the per-share value of the tokens it holds, has become the single number that decides whether digital asset treasury companies can keep raising money to buy crypto. In April 2026 Galaxy Research reported that mNAV across the sector had compressed to near 1, and on 29 June 2026 Strategy, which describes itself as the largest bitcoin treasury company, said it would stay disciplined on issuing common equity when its stock trades “at or near 1x mNAV” and set up a $1.0 billion share buyback programme and a bitcoin sale programme instead.
This explainer sets out how mNAV is calculated, why a reading above or below 1 changes a treasury company’s options, and what to check before relying on the figure.
What mNAV measures: share price against crypto held per share
A digital asset treasury company (DAT) is a listed company whose main strategy is to hold a crypto asset on its balance sheet, funded by selling shares, debt and preferred stock. Investors buy the shares as a way to gain exposure to that asset through a public market vehicle. Galaxy Research’s April 2026 report on DATs notes that bitcoin accounts for more than 75% of the sector, and that the number of distinct tokens held by DATs has grown from 13 in its first report to at least 27.
mNAV compares what the market pays for that exposure with what the company actually holds. Strategy’s published definition divides the market price of one class A share by the company’s Net Bitcoin Per Share in US dollars. A reading of 1.3x means investors pay $1.30 for every $1 of bitcoin attributable to each share after senior claims. A reading of 0.9x means the shares trade at a discount to that bitcoin.
Why “NAV” here is not net asset value
Strategy states that although mNAV uses the label “NAV”, it is not equivalent to net asset value in the traditional financial sense. The calculation deducts out-of-the-money convertible notes and perpetual preferred stock at their notional amounts, nets off the company’s US dollar assets, and ignores liabilities such as deferred tax, operating leases and legal contingencies. It is a market ratio designed around one asset, not a fund-style valuation.
How the mNAV calculation works, step by step
Strategy’s definition, which it applies from 23 July 2026, builds the denominator in three stages:
- Net BTC: bitcoin holdings, minus the notional amount of out-of-the-money convertible notes and other debt-like instruments, minus the notional amount of outstanding perpetual preferred stock (excluding in-the-money convertible preferred), plus the company’s US dollar assets.
- Fully diluted shares: basic shares plus options, restricted and performance stock units, and only those convertibles that are in-the-money. Out-of-the-money convertibles are treated as debt in step 1 instead.
- Net Bitcoin Per Share: Net BTC divided by fully diluted shares, expressed in satoshis or in dollars. mNAV is the share price divided by the dollar figure.
Two features matter. A convertible can move between the debt deduction and the share count as the stock price moves, so mNAV can shift without any new transaction. And Strategy says its mNAV figures calculated before 23 July 2026 referred to a different metric and are not comparable with those calculated after. Historical charts that join the two series overstate continuity.
Above 1x the flywheel turns; below 1x it reverses
The reason mNAV dominates DAT analysis is that it determines whether raising equity adds or removes crypto per share. Strategy’s notes set out the rule: when mNAV is greater than 1, issuing common stock to buy bitcoin would be expected to increase Net Bitcoin Per Share and be accretive; when mNAV is less than 1, the same issuance would be expected to reduce it and be dilutive. The same logic applies to preferred stock sold above or below its notional amount.
That is the “raise, buy, appreciate” flywheel Galaxy describes: a premium lets the company sell shares, buy more of the asset and raise holdings per share. When the premium disappears, the loop stalls.
| mNAV reading | Effect of selling stock to buy crypto | Typical capital response |
|---|---|---|
| Above 1x | Accretive: crypto per share rises | At-the-market share sales, PIPEs, convertibles, preferred issuance |
| At or near 1x | Broadly neutral before costs | Issuance discipline; Strategy says it will be “disciplined” here |
| Below 1x | Dilutive: crypto per share falls | Share buybacks, asset sales to fund repurchases or debt, consolidation |
The thresholds follow Strategy’s published accretion rule and exclude transaction costs, taxes and market impact.
The capital stack behind digital asset treasury companies
Galaxy lists the instruments DATs used to fund purchases: at-the-market (ATM) offerings, private investments in public equity (PIPEs), equity lines of credit, convertible notes, warrants and preferred equity. Galaxy adds operating overhead, such as custody and reporting, and the opportunity cost of capital to the cost of running a DAT.
Strategy’s own figures show how fixed obligations build up. In its 29 June 2026 announcement, the company put expected annual preferred dividends and interest at about $1.76 billion, against a US dollar reserve of about $2.55 billion, or roughly 17.4 months of cover. It set a minimum reserve of 12 months, raised the dividend rate on its STRC variable-rate preferred stock to 12.00% for record dates from 1 July 2026, and authorised the sale of bitcoin to raise up to $1.25 billion for the reserve, which it said would take total cover to about 25.9 months.
Every dollar of those senior claims is deducted before Net Bitcoin Per Share is calculated, and the dividends and interest on them must be paid in cash.
What treasury companies do when the premium compresses
Galaxy reports that, as prices fell and mNAV compressed, several DATs sold assets to buy back shares. ETHZilla sold $40 million of ether in October 2025 to fund repurchases, and French bitcoin holder Sequans sold bitcoin the following month to cover debt obligations.
Strategy’s June framework formalised the same toolkit at scale: a repurchase programme for up to $1.0 billion of its class A common stock, a separate programme for up to $1.0 billion of its preferred securities, and a bitcoin monetisation programme that can fund those buybacks. “Strategy is evolving from one-way capital issuance to active capital management,” chief executive Phong Le said in the release. None of the programmes obliges it to sell bitcoin or repurchase securities.
Turning holdings into income
Galaxy argues that the next generation of DATs must earn operating income to justify a premium. For proof-of-stake assets, it cites staking yields of about 3% on ether and 7% on SOL. It also points to acquisitions such as Nakamoto’s purchase of BTC Inc. and UTXO Management. Galaxy expects larger DATs to acquire smaller ones that cannot make the transition, a pattern that would add to the wider pick-up in US fintech M&A.
Reading mNAV disclosures without being misled
Because mNAV is a company-defined metric, the definitions differ between issuers. Strategy describes its per-share figures as supplements to its SEC filings, not substitutes. Anyone comparing DATs should check which senior claims are deducted, whether convertibles are counted as shares or debt, which price source is used for the asset, and whether the definition has changed. The underlying numbers sit in the company’s 10-Q, 10-K and 8-K reports, which our guide to SEC filings for fintech investors explains.
Investors can also gain exposure through spot exchange-traded funds, so the premium a DAT can sustain depends partly on what it offers beyond holding the asset. Our explainer on crypto ETFs covers how those funds work.
mNAV FAQs
Does an mNAV below 1x mean a treasury company is worth less than its crypto?
Not exactly. A reading below 1x means the share price is below the per-share value of the crypto left after deducting certain senior claims under that company’s definition. Strategy states that the figure is not book value and not the amount shareholders would receive in a liquidation, and it excludes liabilities such as deferred tax.
Why can mNAV change when the company has not bought or sold anything?
Both sides of the ratio move with markets. The share price changes daily, the dollar value of the crypto moves with the token price, and convertible instruments can switch between being deducted as debt and being counted as shares as they move in or out of the money.
Why would a bitcoin treasury company sell bitcoin to buy back its own shares?
When shares trade below the value of the bitcoin behind them, buying back stock can increase the bitcoin attributable to each remaining share. Galaxy cites ETHZilla selling $40 million of ether in October 2025 to fund repurchases, and Strategy authorised bitcoin sales in June 2026 that may fund buybacks of common and preferred stock.
What should a counterparty check before relying on a DAT’s mNAV?
Check the issuer’s own definition, the list of senior claims deducted, the share count method, the asset price source and the date of measurement. Then reconcile the inputs to the latest SEC filings, since company-published dashboards are supplementary and the calculation rests on the company’s own assumptions.
For lenders, prime brokers and custodians, mNAV is now a practical signal of whether a treasury company will be buying or selling the asset it holds, and so of its liquidity needs and its demand for services. For investors, the ratio is only as reliable as the definition behind it, which can change. As banks build out digital-asset custody, the treasury companies that hold the most crypto are likely to remain both important clients and a source of concentrated market risk.
