MNAV speculation in the open market has returned. MNAV, created as a colloquial simplification in Crypto Lingo, refers to the ratio of multiple asset values or market capitalizations to crypto assets held by public companies.
However, like most terms from the early cryptographic sector, acronyms are misnamed. Unlike trusts, public companies do not have a “net assets”, a controlled period, and the average shareholder has no right to redeem the shares of their assets.
Even MicroStrategy, the largest company trading in positive MNAVs, explicitly communicates to shareholders that its shares (MSTRs) do not award ownership of the Bitcoin (BTC) held by the company.
Nevertheless, at least half a dozen public companies are trading on the US stock exchanges at positive MNAVs at the time of publication.
MicroStrategy’s vibrant investment peaked on November 20, 2024, when investors paid 3.4 MNAV or more. Today, that MNAV ratio has been reduced to 2.
Still very impressive, the MNAV of 2 means that investors are paying twice as much to MSTR as they can pay to get the BTC fully. MSTR investors are overpaying as they believe Michael Saylor will find a way to fully dilute its multiple expansions or Accrete BTC and expand into the future.
Other companies trade at much more generous multiples.
Read more: Strategic trading with 9 months low multiples at Bitcoin Holdings
Cryptocurrency overpayment: Beyond MicroStrategy
The newly formed company of Cantor Equity Partners (CEP), Jack Mallers, managed by Tether and Bitfinex, closed trading sessions on Wednesday, with a market capitalization of $433 million, worth about $107 million, hoping to win 2.7% of 42,000 BTC.
It puts CEP Impressive 4 mnav.
Upexi (UPXI) recently closed a $100 million private placement intended to be used to purchase Solana (SOL).
Under the assumption that $100 million worth of SOL will be acquired in a short period of time, Wednesday’s trading session will have a market capitalization of $407 million or 4 mnav.
Sol Strategies (CYFRF) has secured a $500 million convertible note facility to acquire SOL.
However, if you tapped on a portion of that facility and its token count didn’t increase, it last disclosed 267,151 sols on a balance sheet worth around $40 million today.
It collides with and 8.2 mnav At a closed market capitalization of $330 million.
Elsewhere, Defi Development Corporation (JNVR) has raised $42 million to buy Sol. It was closed at a market capitalization of $109 million 2.6 mnav.
Meanwhile, Metaplanet (MTPLF) holds 5,000 BTC worth $474 million, but closed on Wednesday in trading at a market capitalization of $1.3 billion, and its placement MNAV at 2.7.
Finally, Boyaa Interactive (Boyaf) which has a $392 million worth of BTC is held at $317 million. MNAV is 1.2.
As the example above shows, MNAV is a simple valuation that ignores debt, business obligations, and many other factors that should affect your rational investment decision.
Nevertheless, it is clear that MNAV mania rounds have once again been infected with crypto traders, with so many ratios above 1.
