MicroStrategy’s mNAV Premium Collapses Near Parity as Losses Raise Questions

Beincrypto reports MicroStrategy’s mNAV premium has collapsed to near parity, cited at about 1.03–1.04x, erasing the valuation cushion that previously supported its Bitcoin-funded capital raises. Previously trading at premiums above 2x and at times 2.5x, the premium allowed the firm to issue equity, convertibles and preferreds to buy more Bitcoin.

The company (now Strategy) holds roughly 673,783 BTC valued at more than $63 billion and about $2.25 billion in cash, while basic market capitalization is listed at $47 billion, diluted at $53 billion and enterprise value at $61 billion. In a January 5, 2026 Form 8-K, the firm disclosed a $17.44 billion unrealized loss on digital assets for Q4 2025 and a $5.40 billion unrealized loss for the full year; under current accounting rules digital assets are treated as indefinite‑lived intangible assets, which forces impairments in downturns without upward remeasurement.

Strategy has also shifted toward yield-based preferreds: its STRC Variable Rate Series A perpetual stretch preferred stock carries an 11% annual dividend, with the next payment expected to be about $0.91 per share later this month. Some investors, including Adam Livingston, called the roughly 1.03x mNAV "the best entry point" they have seen, while supporters such as Joe Burnett have argued the yield framing could allow the company to service dividends for decades even if Bitcoin stays flat.

Key Topics

Crypto, Microstrategy, Mnav, Bitcoin, Strc Preferreds, Michael Saylor