"It adjusts the company's holdings to the current market price of bitcoin, accounts for liquid cash and debt, and factors in share dilution. mNAV provides a clearer picture of a bitcoin treasury company's true financial position than conventional accounting standards. It has become the standard tool for evaluating corporate bitcoin strategies because it centers the analysis on bitcoin itself, rather than legacy accounting conventions that can distort value."
"The purpose of mNAV is to provide an accurate, real-time valuation anchor for companies that hold bitcoin. Historically, under US accounting rules (GAAP), bitcoin was treated strictly as an intangible asset. This required companies to recognize impairments when the price fell but prevented them from recognizing gains until the asset was sold. While recent updates to FASB rules (ASU 2023-08) now allow companies to report bitcoin at fair value, GAAP financial statements remain retrospective-snapshots taken only once per quarter."
mNAV quantifies the real-time economic value of a company's bitcoin reserves on a per-share basis by revaluing holdings at current market prices and adjusting for liquid cash, debt, and share dilution. It replaces quarterly, retrospective GAAP snapshots with dynamic, market-based valuation that tracks 24/7 bitcoin price movements. mNAV reveals economic reality by allowing investors to see reserve value continuously, enabling identification of market premiums or discounts that reflect execution, governance, and capital efficiency. mNAV serves as a valuation anchor for analyzing public bitcoin treasury companies and access vehicles and standardizes comparisons across firms.
Read at Bitcoin Magazine
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