What is mNAV and why does it matter

Hello and welcome to Bitcoin Balance Sheet, the new twice weekly email from Bitcoin Treasuries, where we track the latest in corporate Bitcoin buying.

Each Monday, you'll receive a quick blast on the top buyers over the last week. We'll follow that up every Friday with digest and analysis. Enjoy!

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• Tim Kotzman

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What is mNAV and why does it matter

In the world of corporate Bitcoin treasuries, market-to-Net Asset Value, or mNAV, is one of the most important metrics an investor should track. 

It’s a simple ratio: a company’s market capitalization divided by the market value of the Bitcoin it holds. 

If the ratio is above one, the stock trades at a premium to its BTC holdings. If it’s below one, it trades at a discount — meaning the market isn’t even willing to pay for the full value of the company’s Bitcoin stack.

For example, imagine a Bitcoin treasury company with 10,000 BTC worth $1.2 billion and a market cap of $1.5 billion. That’s an mNAV of 1.25. Investors are paying 25% more than the raw Bitcoin value, likely because they believe in the firm’s growth strategy, operational leverage, or access to cheap capital.

Flip the numbers — a market cap of $1 billion with the same BTC holdings — and the mNAV is 0.83, signaling a discount.

mNAV is a clean, comparable way to evaluate Bitcoin treasury stocks that does away will all the buzzwords and hype, focusing, instead, on the core economic proposition: how much the market values the BTC on the balance sheet relative to its spot price.

You can find every key definition and formula behind cutting-edge metrics like Forward mNAV, Adj. BTC Yield YTD%, and Risk-Adjusted Months to Cover mNAV, and more on our Bitcoin Treasuries Learn Glossary.

We’re constantly evaluating and improving our metrics, and we hope to surface these for all users soon.

The two types of mNAV

Essentially, mNAV fluctuates between two levels: premium and discount.

Premium mNAV (>1) suggests investors are paying extra for the company’s execution, growth potential, or strategic positioning. 

This is common for firms like Strategy (formerly MicroStrategy) at the height of bull cycles, when capital markets trust management to compound BTC holdings faster than spot buyers could.

Right now, Strategy has a premium of 1.4x, meaning investors are paying a 40% uptick on shares when compared to their underlying Bitcoin holdings. Michael Saylor’s firm holds 628,946 Bitcoin worth about $73 billion, while its market capitalization tops $102 billion.

Japan-based Metaplanet also offers investors a handsome premium, trading at 1.9x above its underlying Bitcoin holdings, which now amount to 18,133 Bitcoin or $2.1 billion. The firm led by Simon Gerovich has a $4 billion market capitalization.

Discount mNAV (<1): signals skepticism, perhaps about the firm’s governance, funding sustainability, or operational risks. In extreme cases, it can point to distress, where investors fear forced BTC sales to cover debts or operations.

Of 167 publicly trading companies that we track on Bitcoin Treasuries, roughly 13%, or 21 firms, are trading at a discounted mNAV.

One example is Semler Scientific, which ranks 16 globally in our Bitcoin Treasuries list. With a market capitalization of $504 million, and $589 million in Bitcoin holdings, Semler trades at a 0.8x discount to mNAV.

Four factors influencing mNAV

Several factors influence whether a Bitcoin treasury company trades above or below its mNAV:

Capital Access and Cost: Companies with low-cost funding tools (e.g., convertible notes, preferred shares) can scale BTC holdings faster, warranting a premium.

Operational Leverage: Miners with efficient rigs and cheap power can reinvest profits into Bitcoin accumulation, adding upside optionality beyond the raw BTC count.

Strategic Partnerships: Institutional backers like Tether, SoftBank, or Cantor Fitzgerald can boost confidence in a company’s staying power.

Risk Profile: High leverage, debt maturities, or opaque governance can push the stock toward a discount, even in a rising BTC market.

Now, mNAV is not a standalone buy or sell signal. It’s a lens. A premium can mean confidence, or hype. A discount can mean distress, or opportunity. 

The trick lies in pairing mNAV with the qualitative context surrounding the firm: 

• Is the company buying BTC aggressively or standing still?

• Are there non-BTC revenue streams that justify a premium?

• How sustainable is its funding model in different market conditions?

For Bitcoin-focused investors, mNAV helps answer a core question: Am I getting exposure to Bitcoin at a discount, or paying a premium for management’s ability to grow the stack?

Announcements

Blog launch — We launched a blog where people can follow us to get product updates: https://blog.bitcointreasuries.net/. It is open for submissions if people want to submit content

Upcoming partnership — We're going to be announcing an upcoming partnership with Stacking Sats Inc to boost Bitcoin adoption among private companies: https://stackingsatsinc.com/.

New Spaces Host — Former Bitcoin Magazine reporter Ansel Linder will be joining us as our new M-F Spaces host. We are looking for topic and guest ideas: https://x.com/AnselLindner.

X Follow List — We've put together a public list of who to follow in the Bitcoin Treasuries community on X: https://x.com/i/lists/1949967619596902700

Over To You: What Do You Track?

We want to make this the go-to resource for corporate Bitcoin strategy — and that means learning from our readers.

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• What tools would you like to see us integrate?

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