A simplified comparison between a treasury company’s enterprise or equity value and the value of its bitcoin holdings.
Analysts variously use market capitalization, enterprise value, diluted shares and different treatments of cash, debt and preferred securities. A multiple without a precise formula can therefore mislead.
A premium may reflect expected capital-raising ability, brand, option-like equity exposure, liquidity or regulatory access. It can also compress quickly and weaken future issuance economics.
For the clearest picture, read this entry together with Strategy (MicroStrategy), Net asset value, ETF premium and discount, Bitcoin treasury company, Market reflexivity. The reverse links also lead from Strategy (MicroStrategy), Bitcoin treasury company, Bitcoin yield metric, At-the-market offering.
Define numerator and denominator
Include debt and preferred claims
A premium is not guaranteed
mNAV alone ignores maturity risk