Strategy CEO: Bitcoin will only be sold when the MicroStrategy mNAV falls below 1 and financing is interrupted. How is the net asset value calculated?

Holding nearly 650,000 Bitcoins, Strategy ( MicroStrategy ) faces risks of stock price discount and passive dumping. The CEO emphasized that unless financing becomes impossible, they will not sell Bitcoin. (Background: The crypto community resists the JPMorgan report: dumping funds, buying MicroStrategy and Bitcoin support) (Additional background: MicroStrategy: Strategy currently holds 650,000 BTC which can support 71 years of dividends) Bitcoin ( BTC ) has fallen from this year's peak to the current $90,000, and the market's previously touted “Bitcoin treasury” Strategy (MicroStrategy) has also seen a sharp decline, falling over 50% in the past six months. The market discussion has shifted to “Will MicroStrategy be liquidated?” leading to a disastrous chain reaction in the market. Against this backdrop, Strategy CEO Phong Le candidly stated in a recent interview that they would only consider selling Bitcoin if the company’s stock price falls below net asset value and cannot secure new funds. If Strategy’s market net asset value (mNAV) is below 1, and financing options are exhausted, then dumping Bitcoin mathematically becomes reasonable to protect Bitcoin's earnings per share. Of course, he also pointed out that this would be a last resort, not a policy shift. He emphasized that they do not want Strategy to become a company that sells Bitcoin and added that when market sentiment is low, financial discipline must prevail over emotions. Has MicroStrategy’s mNAV dropped below 1? According to MicroStrategy's official data, the company currently holds 649,870 Bitcoins with a market value of approximately $59.2 billion. With an average cost of $74,000, there is still a profit on paper, and the current mNAV is 1.13. Two methods for calculating mNAV It should be noted that you may have seen news claiming that MicroStrategy's mNAV has dropped below 1, as there are two common methods for calculating mNAV ( Market Net Asset Value ). One is more complex and is the standard calculation formula often used by analysts (the official MicroStrategy dashboard uses this algorithm): Numerator: Enterprise Value ( Enterprise Value, EV ), which represents the theoretical cost of acquiring the entire company. Market Cap (: Stock price X number of shares outstanding (note whether it includes fully diluted shares, such as potential shares after convertible bond conversions). Total Debt ): All long-term debt issued by the company (such as convertible bonds, preferred notes, etc.). Cash (: Cash reserves on the company's accounts. Denominator: Bitcoin NAV ) Bitcoin NAV (, which represents the total value of the Bitcoins held by the company calculated at current market prices. Index exclusion and debt maturity test liquidity In addition to coin prices, another pressure on MicroStrategy comes from new regulations by index providers. Previous reports indicated that Strategy might be excluded from indices like MSCI. According to estimates from analytical firms, this could trigger billions of dollars in mechanical dumping by passive funds, further squeezing stock prices. Meanwhile, the company's first convertible notes will mature at the end of the year. Although management claims the debt structure is “highly flexible,” if the stock price cannot recover its premium before maturity, it will be more difficult to restart equity or debt financing. At that time, the market will truly test Phong Le's so-called “last resort” bottom line. Related reports Tom Lee lowers Bitcoin year-end target “$250,000 down to $100,000”: Now I can only say it’s possible Tether buying Bitcoin drags down USDT “S&P gives the worst rating”: Risk asset proportions rise, exacerbating depeg potential China's crypto ban ineffective? Reuters: Bitcoin mining computing power climbs to 14%, returning to the world's third-largest mining country <Strategy CEO: Only if MicroStrategy's mNAV drops below 1 and financing is cut off will they sell Bitcoin, how is net asset value actually calculated?> This article was first published in BlockTempo, the most influential blockchain news media.