The informal method used by the public to calculate the NAV of MicroStrategy (MSTR) is as follows:

NAV=Assets−Liabilities \text{NAV} = \text{Assets} − \text{Liabilities}

If one treats MSTR like a BTC ETF, this approximation is sometimes used; however, MSTR’s official definition is different:

The multiple of the BTC Reserve, as of the specified date, calculated as the Company’s enterprise value (as we define it) divided by the BTC Reserve.
The Company’s enterprise value is calculated as the sum of (A) the total market value of all outstanding MSTR common stock, including Class A and Class B common stock, calculated by multiplying the number of outstanding Class A and Class B shares by the closing price of Class A common stock on the Nasdaq Global Select Market on the applicable date, (B) the aggregate principal amount of the Company’s indebtedness, and (C) the aggregate notional value of the Company’s outstanding perpetual preferred stock, less (D) the Company’s most recently reported cash balance value.

Although mNAV contains the label “NAV,” it is not equivalent to “net asset value” or “NAV” or any similar metric in the traditional financial context.
Additionally, it is not a measure of the amount by which the enterprise value exceeds net asset value in the traditional financial sense.

Investors should rely on the financial statements and other disclosures contained in the Company’s SEC filings. This metric is merely a supplement—not a substitute—for the financial statements and other disclosures contained in the Company’s SEC filings. It should only be used by sophisticated investors who understand its limited purpose and numerous limitations.

According to MSTR’s explanation, although mNAV includes “NAV” in its name, it is not NAV—it is a multiple, without units. The correct formula is:

mNAV=EVBTC Value \text{mNAV} = \frac{\text{EV}}{\text{BTC Value}}

Where EV (Enterprise Value) is defined as:

EV=Market Cap+Total Debt+Preferred Equity−Cash \text{EV} = \text{Market Cap} + \text{Total Debt} + \text{Preferred Equity} - \text{Cash}

Thus:

  • mNAV ≈ 1: Enterprise value ≈ value of BTC holdings.
  • mNAV > 1: The market assigns a positive valuation to core business operations.
  • mNAV < 1: Discounted valuation or substantial net cash position.

Data and Method

My aim is to calculate mNAV using MSTR’s method rather than the public’s approach. Therefore:

market_cap = mstr_close * shares
ev         = market_cap + debt + preferred_equity - cash
btc_value  = btc_holdings * btc_close
mnav       = ev / btc_value
           = (market_cap + debt + preferred_equity - cash) / (btc_holdings * btc_close)

Here, mstr_close, shares, debt, preferred_equity, and cash can be obtained directly from Yahoo Finance (debt, preferred_equity, and cash need to be read from quarterly reports and forward-filled). btc_holdings and btc_close can be retrieved from the MSTR website.

Once collected, mNAV can be calculated. I used AI-assisted vibe coding to finish this process.

Plotting in TradingView

Since mNAV can be precomputed, there’s no need to calculate it inside Pine Script—simply insert the precomputed results from the previous step into Pine Script.

You can directly use the script I published.

#MSTR #BTC #mNAV