Bitcoin News Update: MicroStrategy's Bold Bitcoin Strategy Hits Key Milestone as mNAV Approaches Parity

Bitcoin valuation indicator suggests a 'potential bottom' may be forming: Analysis

MicroStrategy's (MSTR) market capitalization to adjusted net asset value (mNAV) ratio has moved closer to 1, indicating a possible turning point for its Bitcoin-focused approach. This ratio, which helps determine whether investing in the company’s shares or buying

outright is more appealing, currently sits at 1.04 post-dilution, based on StrategyTracker’s figures . This near-equality comes after a 26% return on its Bitcoin assets in 2025 and a third-quarter net income of $2.8 billion, largely due to $3.9 billion in unrealized profits, according to .

The company continued its aggressive Bitcoin purchases in late October and early November 2025, acquiring 397 BTC for $45.6 million at an average price of $114,771 per Bitcoin. This increased its total holdings to 641,205 BTC, now valued at $69 billion, even as Bitcoin’s price fell below $108,000—a level not seen since 2018, according to

. During the Q3 earnings call, CEO Phong Le stated that the company is considering Bitcoin derivatives or equity swaps to maintain dividends without further shareholder dilution, as the mNAV nears a critical point, as reported by Bitget.

MicroStrategy’s financial results highlight both the potential gains and risks of its Bitcoin-heavy treasury strategy. The mNAV ratio, which compares the company’s enterprise value to its Bitcoin reserves, previously acted as a buffer against equity dilution. However, the ratio’s drop to 1.04—down from a previous 2.5—has limited the company’s ability to fund additional Bitcoin purchases through equity, according to a

. CFO Andrew Kang forecasted $34 billion in operating profit and $24 billion in net earnings for 2025, assuming Bitcoin averages $150,000 by year-end. Still, analysts warn that the company’s leverage and focus on a single asset make it vulnerable to price swings, especially if Bitcoin weakens, as highlighted in the market analysis.

Wider market conditions add urgency to MicroStrategy’s approach. Bitcoin’s recent drop of over 3.5% to $107,000 happened alongside ongoing U.S.-China trade disputes and postponed Federal Reserve rate reductions, according to

. Spot Bitcoin ETFs saw $789 million in outflows over the week, indicating reduced institutional interest. Meanwhile, U.S. President Donald Trump’s comments limiting access to Nvidia’s advanced AI chips dampened market optimism and increased risk aversion, as also reported by FXStreet.

Despite these challenges, MicroStrategy remains steadfast in its long-term plan. The company raised $19.8 billion through preferred and common stock offerings in 2025, financing purchases that now represent more than 3% of all Bitcoin in circulation, as detailed in the Bitget report. CEO Michael Saylor, however, faces mounting scrutiny as the mNAV approaches parity and Bitcoin’s price remains unstable. "Each new filing intensifies the debate over how corporations handle digital assets," observed a CoinTimes analysis.

The company’s future depends on Bitcoin’s ability to recover. Should the cryptocurrency rally, MicroStrategy’s approach could prove worthwhile. But as Tom Lee from BitMine Immersion Technologies recently pointed out in

, the broader crypto industry is facing tough conditions, with many companies turning to share buybacks amid weak stock performance. For now, the market is closely watching as MicroStrategy’s mNAV nears a pivotal level—and Bitcoin’s valuation indicator suggests a possible bottom may be near.