The Wall Street Journal reports that Strategy's mNAV metric has flaws, and the company may use its Bitcoin reserves

According to The Wall Street Journal, the mNAV indicator created by Strategy uses the face value of debt and preferred stock instead of market value when calculating enterprise value, resulting in a systemic flaw in the indicator. Strategy's stock price has fallen by 75% in the past year, and mNAV fell below 1 at one point last month. The board of directors of the company has authorized the sale of up to $1.25 billion in Bitcoin for the purpose of repurchasing shares and paying interest and preferred stock dividends. Strategy currently has a cash reserve of $2.55 billion that can support approximately 17 months of interest and dividend payments. If mNAV remains below 1, the company may have to use its Bitcoin reserves.