MicroStrategy (MSTR) and Chairman Michael Saylor face criticism for using a custom mNAV metric to value Bitcoin holdings. This non-standard approach potentially distorts the company’s financial health compared to traditional market-based accounting.
The mNAV calculation uses the face or par value of debt and preferred stock rather than current market values. Critics argue this method artificially inflates the company’s enterprise value as its security prices decline.
This accounting choice obscures whether the stock trades at a premium or discount to its underlying Bitcoin assets.