Strategy mNAV Drops Below 1 With $50.7B Bitcoin and 9.8-Month Runway
STRC•Strategy’s Market-to-Net Asset Value ratio fell to 0.99 for the first time, marking shares trading below the firm’s 847,363 BTC reserve worth $50.7 billion. The company holds $1.4 billion in cash against $1.71 billion of annual dividends, covering only 9.8 months of payouts.
1. mNAV Falls Below Parity
Strategy’s Market-to-Net Asset Value ratio declined to 0.99 for the first time in company history, reflecting market valuation of shares below the Bitcoin holdings on its balance sheet.
2. Balance Sheet Strain
The firm holds 847,363 BTC valued at $50.7 billion alongside $1.4 billion in cash, against $1.71 billion in annual dividend obligations and $6.75 billion of debt plus $15.5 billion in preferred securities, limiting dividend coverage to 9.8 months.
3. Analyst Recommendations
Analysts project a potential 50 basis-point increase in dividends but urge a sale of at least $3 billion in Bitcoin to bolster liquidity, warning that without asset sales, cash reserves will fall short of obligations.
