Woofun AI reports that MicroStrategy's proprietary mNAV indicator contains systemic flaws by utilizing face value instead of market value for debt and preferred stocks, artificially inflating corporate valuation metrics. Recent data reveals significant discrepancies, with official mNAV figures exceeding adjusted market-based calculations.

Strategy's stock price has declined 75% over the past year, disrupting its premium-financed Bitcoin acquisition model. The board authorized up to $1.25 billion in Bitcoin sales to fund buybacks and service debt. With cash reserves covering obligations for approximately 17 months, persistent mNAV deficits below 1 could compel the company to liquidate Bitcoin holdings, potentially impacting global supply dynamics.