The company explained that it would only consider sales if its market net asset value, often called mNAV, falls below one and the firm can no longer bring in new capital. That level would mean the market no longer values its holdings above the price of the underlying assets. In a call with investors, CEO Phong Le repeated that the company remains committed to long term holding. He added that any future sales would be limited and done only to protect shareholder value.
Understanding mNAV and Its Importance to Strategy
The idea of mNAV can sound technical, but it is simply a way to measure the value of a company compared with the assets it holds. When mNAV is above one, the market gives the firm a premium because it trusts the strategy and expects future growth. When it falls below one, that premium disappears.
That matters because Strategy often raises money from investors who want exposure to the firm’s growing Bitcoin position. As long as mNAV stays strong, the company can bring in new funding at favorable terms. If the premium drops and raising new capital becomes difficult, the company may need to use small protective sales to keep operations steady. These would not be large sales but tactical moves designed to avoid forced liquidations.
Lessons from Past Market Pressures
A recent real world example shows why this issue matters. In early 2024, a publicly traded mining firm faced pressure when energy costs spiked and its share price dropped below the value of its assets. It was forced to sell part of its Bitcoin reserves during a weak market to cover expenses. Investors viewed the sale as a sign of stress and the stock fell further. Strategy wants to avoid that pattern by preparing clear rules well in advance.
Our CEO, Phong Le, joined @_DannyKnowles on What Bitcoin Did to unpack Strategy’s Bitcoin engine – the treasury design, perpetual preferreds, and capital structure that lets us keep stacking through every market cycle. Listen below! https://t.co/LlMaLQRoQJ
— Strategy (@Strategy) November 28, 2025
Strategy's Financial Resilience and Bitcoin Coverage
Strategy explained that it tracks what it calls the BTC Rating of its debt, a simple measure of how many times its Bitcoin holdings cover its convertible debt. The firm said that even if Bitcoin falls to its average cost basis of seventy four thousand dollars, it would still hold about five point nine times more assets than the value of that debt.
If $BTC drops to our $74K average cost basis, we still have 5.9x assets to convertible debt, which we refer to as the BTC Rating of our debt. At $25K BTC, it would be 2.0x.
— Strategy (@Strategy) November 25, 2025
If the price dropped all the way to twenty five thousand dollars, the rating would still be about two times coverage. In other words, the company believes it has a strong cushion against market swings and enough backing to stay secure even during deep price declines.