- Public companies are trading at significant multiples to their crypto holdings, with mNAV (multiple-to-net asset value) ratios as high as 8.2.
- MicroStrategy currently trades at a 2x mNAV, while newer crypto-holding companies like SOL Strategies and Cantor Equity Partners trade at 8.2x and 4x respectively.
- Despite being a simplistic valuation method that ignores debt and business obligations, mNAV has become a popular metric driving crypto investor behavior.
Investors are once again paying premium prices for public companies based on their cryptocurrency holdings, reviving the "mNAV" (multiple-to-net asset value) trend in markets. This ratio measures how much investors are willing to pay for a company compared to the value of crypto assets on its balance sheet, with several firms now trading at multiples well above 1.0.
The term mNAV is technically misleading in financial circles. Unlike investment trusts, public companies don’t have "net assets" as a controlled accounting term, and common shareholders have no redemption rights to the underlying crypto. Even MicroStrategy explicitly states that its stock doesn’t give shareholders any direct ownership of its Bitcoin holdings.
The Current mNAV Landscape
MicroStrategy, the largest crypto-holding public company, currently trades at an mNAV of 2, meaning investors pay double what they would to acquire bitcoin directly. While impressive, this is down significantly from its November 2024 peak of 3.4.
Other companies command even higher premiums. Cantor Equity Partners (CEP), Jack Mallers’ firm backed by Tether and Bitfinex, trades at an mNAV of 4 with a $433 million market cap against approximately $107 million worth of bitcoin holdings. Similarly, Upexi (UPXI) trades at an mNAV of 4 following a $100 million private placement earmarked for solana purchases.
The most extreme example is SOL Strategies (CYFRF), trading at an mNAV of 8.2, with investors valuing the company at $330 million against only $40 million worth of solana tokens on its balance sheet.
Beyond Simple Ratios
Other notable examples include DeFi Development Corporation (JNVR) with an mNAV of 2.6, Metaplanet (MTPLF) at 2.7, and Boyaa Interactive (BOYAF) with a more modest 1.2.
Industry analysts note that mNAV is a simplistic metric that ignores crucial factors like debt, business obligations, and other financial considerations that should inform investment decisions. Nevertheless, the high ratios across multiple companies suggest a renewed wave of speculative interest in crypto-holding public entities.
Investors appear willing to pay these premiums based on expectations that companies will either acquire more tokens over time or find ways to expand their multiples through business development, despite having no direct claim on the underlying assets.
The trend marks a significant return to speculative valuation models in the cryptocurrency sector, with traders increasingly focused on these public market proxies for crypto exposure.
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