Strategy Inc. CEO Phong Le has announced a radical simplification of the mNAV formula, which governs the company's issuance of new shares. The financial reform comes at a critical moment: according to the latest TradingView charts, Strategy's key instruments and Bitcoin itself have suffered steep declines since the beginning of the year.
Why change the formula now?
The main change is the introduction of a fixed efficiency threshold of 1.0x, while the mNAV metric itself has risen to 1.07x. According to Le, this creates the simplest and most transparent trigger possible for restarting the equity "printing press."
The new formula is intended to restore investor confidence amid intense market pressure. The chart shows that since January, the company's market capitalization and debt instruments have moved sharply lower in tandem.
Our upgraded mNAV 1) accounts for all securities senior to $MSTR, 2) distinguishes ITM and OTM converts, and 3) establishes a 1.0x threshold for accretive MSTR issuance. Thanks to the institutional and retail investors, analysts, and Bitcoin Treasury Companies for the feedback. https://t.co/Dgy89Myqyb
— Phong Le (@phongle) July 28, 2026
By introducing a metric that is easy for the market to understand, management is attempting to prove to Wall Street that any future share issuance will guarantee an increase in Bitcoin per share, or BPS, which currently stands at 0.0023 $BTC.
Worst performance of the year: MSTR shares fall faster than Bitcoin
The one-year performance chart clearly illustrates why the company urgently needed to change the rules of the game. The biggest disappointment for investors has been the performance of Strategy's own stock, MSTR:
- MSTR collapse: The company's shares delivered the worst result on the chart, plunging 39.45%. The stock has completely erased its spring rally, when it briefly outperformed the market, and is now in a deep decline.
- Bitcoin decline: The leading cryptocurrency, $BTC/USD, has lost 26.43%. Strategy shares are therefore falling significantly faster than their underlying asset.
Strategy's digital credit instruments, with a combined volume of $12.2 billion, are also trading in negative territory, but they appear more resilient than the common stock:
- STRD has declined 21.74%.
- $STRK has fallen 24.04%.
This performance explains management's recent decision to allocate $25 million for an emergency repurchase of STRC preferred shares at $86.52 each, below their $100 par value.