mNAV, or multiple of net asset value, compares what the market values a company at with the market value of the Bitcoin it holds. An mNAV of 1.0 means the company is valued at exactly its Bitcoin; above 1.0 is a premium, below 1.0 is a discount.
It has become the headline metric for Bitcoin treasury companies, because it shapes how they can raise capital. It is also easy to calculate in ways that are not comparable, so the method matters as much as the number.
The basic mNAV formula
At its simplest:
mNAV = company market value ÷ market value of Bitcoin held
The denominator is straightforward: the number of bitcoin the company holds multiplied by the current Bitcoin price. This is sometimes called the Bitcoin NAV.
The numerator is where conventions differ. There are two common approaches.
Two conventions: market capitalisation or enterprise value
Market capitalisation basis
mNAV = market capitalisation ÷ Bitcoin NAV
Market capitalisation is share price multiplied by shares outstanding. Many analysts use fully diluted shares, including the effect of convertible bonds, options and other instruments that could become shares.
This version is simple and widely quoted. Its weakness is that it ignores debt. Two companies with the same market capitalisation and the same Bitcoin look identical, even if one funded its purchases with large borrowings.
Enterprise value basis
mNAV = enterprise value ÷ Bitcoin NAV
Enterprise value starts with market capitalisation, adds debt and preferred shares, and subtracts cash. It reflects the total claims on the company, not just ordinary equity.
This version gives a fuller picture for companies that have borrowed or issued preferred instruments to buy Bitcoin. It is also more complex, and analysts differ on details such as how to treat convertibles that may be repaid in shares.
Which to use
| Basis | Includes debt? | Best for | Main limitation |
|---|---|---|---|
| Market capitalisation | No | Quick comparison of holders with little debt | Overstates value per Bitcoin when debt is large |
| Enterprise value | Yes | Companies funded with debt or preferred shares | More assumptions; harder to compare across sources |
Neither is wrong. What matters is consistency, and stating the method whenever a figure is quoted.
A simple illustration
The figures below are hypothetical and chosen only to show the arithmetic.
A company holds 10,000 bitcoin. At an assumed price of $50,000, its Bitcoin NAV is $500m.
- Its fully diluted market capitalisation is $750m. On a market capitalisation basis, mNAV is 1.5.
- It also has $200m of debt and $50m of cash. Its enterprise value is $900m. On an enterprise value basis, mNAV is 1.8.
The same company, on the same day, shows two different figures. Both figures also move every minute, because the Bitcoin price and the share price change continuously, and Bitcoin trades at weekends when stock markets are closed. A quoted mNAV is always a snapshot, and should carry the date and time of the prices used. That is why comparing mNAV numbers from different sources without checking the method can mislead.
Premium and discount: what they mean
A premium (mNAV above 1) means investors value the company at more than its Bitcoin. Reasons can include:
- Expectations that the company will keep adding Bitcoin per share.
- Value attributed to an operating business alongside the holdings.
- Easier access for some investors than holding Bitcoin directly.
- Market sentiment.
A discount (mNAV below 1) means the market values the company at less than its Bitcoin. Reasons can include:
- Concerns about debt, refinancing or dilution.
- Doubts about governance, custody or disclosure.
- Operating losses in the underlying business.
- Falling sentiment or the availability of cheaper alternatives, such as ETFs.
Why mNAV matters
mNAV is not just a valuation curiosity. It directly affects what a Bitcoin treasury company can do.
- Accretive issuance. When a company trades at a premium, it can sell new shares and buy more Bitcoin than the shares represent, increasing Bitcoin per share for existing holders.
- Dilutive issuance. At a discount, issuing shares to buy Bitcoin reduces Bitcoin per share. Funding becomes harder.
- Strategic choices. A persistent discount may push a company towards buybacks, debt reduction or even selling Bitcoin.
- Reflexivity. A premium makes growth easier, and growth can support the premium. The same loop can work in reverse, which is a key risk for this model.
See what are Bitcoin treasury companies for how funding models interact with these effects.
CFO tip: if your company reports or discusses mNAV, publish the exact method, including share count and debt treatment, every time. Consistency builds more investor trust than a flattering number.
Using mNAV responsibly
For boards and investor relations teams, a few principles help:
- State the basis (market capitalisation or enterprise value) and the share count used.
- Show Bitcoin holdings, debt and other obligations alongside the ratio.
- Track Bitcoin per share as well as mNAV.
- Avoid presenting a premium as permanent.
Our guide to communicating a Bitcoin strategy to investors covers disclosure in more depth, and how Bitcoin appears on the balance sheet explains the underlying accounting. Terms are defined in our glossary. Companies should take their own accounting, tax and legal advice, and nothing here is investment advice.
How The Bitcoin World helps
We help boards and finance teams understand metrics such as mNAV and build disclosure and investor communication around them. We also design treasury strategy and execution for companies building Bitcoin positions. Execution, custody and settlement are carried out by licensed third-party institutions. See our board advisory service.