MSTR fell 8.55% to $95.55 as BTC slipped below $61K, a textbook mNAV-compression day. Here is what mNAV is, how to calculate it, and how traders use it.
- The article explains mNAV (market-cap-to-net-asset-value) as a key metric for valuing Bitcoin treasury stocks like MicroStrategy, measuring the premium paid for their Bitcoin holdings.
- mNAV compression, where the premium shrinks, causes these stocks to fall harder than Bitcoin itself, acting as a leveraged play on Bitcoin's price movements.
- Traders use mNAV to assess if a treasury stock is cheap or expensive relative to its historical trading range and Bitcoin's value, considering factors like convertible debt and issuance strategies.
Topics: Asset types, Institutional adoption, Market cycles macro sensitivity, Equity, Asset manager initiatives, Market volatility liquidity
Tags: #mnav #microstrategy #bitcoin #treasurystock #premium #discount #leveragedplay #convertibledebt #atthemoneyissuance #michaelsaylor
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