Strategy, the world's largest Bitcoin holder, disclosed an mNAV (market value to net asset value multiple) threshold of 1.22 in its 2026 first-quarter earnings report, which has since been updated to 1.29 as of June 18. The threshold represents the minimum mNAV level at which the company can issue common stock through ATM (At-The-Market) offerings while increasing its BPS (Bitcoin per share). Strategy's calculation methodology differs from typical Digital Asset Treasury companies because it incorporates debt, preferred stock, and ADSO (Assumed Diluted Shares Outstanding) rather than basic share count alone. The company's complex capital structure — including convertible notes, convertible preferred stock, and stock options — requires a higher mNAV threshold than the standard 1.0 breakeven point used by simpler DAT firms.
Strategy's mNAV and BPS Calculation Methodology
Strategy calculates mNAV as enterprise value divided by Bitcoin holdings, where enterprise value reflects debt, preferred stock, and cash reserves. This differs from typical DAT companies that use market capitalization divided by digital asset holdings. The company's mNAV formula is: mNAV = (PD + L) ÷ (BQ), where P represents MSTR share price, D is ADSO, L is debt plus preferred stock minus cash, B is Bitcoin holdings, and Q is Bitcoin price. This methodology produces higher mNAV values compared to standard calculations.
For BPS calculations, Strategy uses ADSO instead of basic share count. ADSO includes basic shares, convertible notes, convertible preferred stock, and stock options — all instruments that could convert to common stock. This approach accounts for all potential dilution in the share base.
Mathematical Derivation of 1.22 Threshold
The 1.22 threshold derives from the condition that BPS must increase when Strategy issues new common stock. When the company issues ΔS additional shares, it can purchase PΔS ÷ Q additional Bitcoin. For BPS to increase, the condition P/Q ≥ B/D must hold — meaning the amount of Bitcoin purchasable with one MSTR share must exceed the current Bitcoin holdings per share.
Substituting the mNAV formula and solving for the break-even condition yields: break-even mNAV = 1 + L / (BQ). Strategy calculated this value as 1.22 in its 2026 first-quarter earnings announcement.
Updated 1.29 Threshold Reflects Current Bitcoin Price
Recalculating with current figures produces a higher threshold. As of May 31, 2026, Strategy had 352,527 basic shares outstanding and 382,756 ADSO. As of June 5, 2026, the company held $6.754 billion in debt, $15.482 billion in preferred stock, and $52.875 billion in Bitcoin holdings. As of March 31, 2026, cash reserves stood at $2.21 billion. With Bitcoin prices lower than during the first-quarter earnings report, the break-even mNAV increased to approximately 1.29. Below this threshold, Strategy cannot profitably issue common stock through ATM offerings to fund Bitcoin purchases.
Implications for Strategy's Capital Raising Strategy
Strategy sold 32 BTC recently, after which BTC, MSTR, and STRC all faced challenging conditions. The company's ability to continue its BPS growth strategy depends on maintaining mNAV above the 1.29 threshold. When mNAV falls below this level, ATM common stock issuance becomes dilutive to existing shareholders on a per-share Bitcoin basis.
FAQ
What is Strategy's current mNAV threshold for ATM stock issuance?
Strategy's mNAV threshold is 1.29 as of June 18, updated from the 1.22 level disclosed in the company's 2026 first-quarter earnings report. The threshold increased due to lower Bitcoin prices compared to the first quarter.
Why does Strategy use a higher mNAV threshold than typical DAT companies?
Strategy's mNAV calculation incorporates debt, preferred stock, and ADSO (Assumed Diluted Shares Outstanding) rather than basic share count alone. The company's complex capital structure — including convertible notes, convertible preferred stock, and stock options — requires the break-even mNAV formula: 1 + L / (BQ), where L represents debt plus preferred stock minus cash, B is Bitcoin holdings, and Q is Bitcoin price.
How much Bitcoin does Strategy currently hold?
As of June 5, 2026, Strategy held $52.875 billion in Bitcoin, making it the world's largest corporate Bitcoin holder. The company had 382,756 ADSO as of May 31, 2026.
