Strategy’s mNAV Ratio Drops to 0.99 as Bitcoin Losses Trigger $12.5 B Deficit
MSTR•Strategy holds 847,363 BTC purchased for $64.1 billion at an average of $75,651, resulting in a $14.46 billion unrealized loss and a $12.54 billion net loss. Its mNAV ratio fell to 0.99 as BTC slid below $60,000, leaving only nine months of cash to cover $1.71 billion in dividends.
1. Bitcoin Holdings and Fair Value Loss
Strategy held 847,363 BTC acquired at a $75,651 average cost for a total of $64.1 billion. The application of FASB ASU 2023-08 fair-value accounting in Q1 2026 produced a $14.46 billion unrealized loss and a $12.54 billion net loss.
2. mNAV Ratio Breach
The market-to-net asset value ratio dropped to 0.99 as Bitcoin prices slid below $60,000, marking the first time Strategy shares traded below the value of its Bitcoin holdings. This breach removes the premium needed to sell new equity without deep dilution.
3. Dividend Coverage and Cash Position
Strategy has $1.4 billion in cash against $1.71 billion in annual dividend obligations, equating to roughly nine months of coverage unless pledged Bitcoin is sold. The cash shortfall intensifies pressure on the company’s no-sell commitment.
4. Impact on Shareholders and Funding Model
Equity sales to fund Bitcoin purchases at 1.0x mNAV incur about 48 basis points of dilution, costing shareholders $310 million per $1 billion raised. Debt holders and index funds also face heightened exposure as the funding flywheel slows.
