The mNAV metric enables investors to determine how much Bitcoin underlies each share, and when a company trades above net asset value, issuing shares can increase Bitcoin per share, whereas trading near or below NAV can lead to shareholder dilution.

Quotes that support claims

As some of these companies raise capital through large at-the-market (ATM) programs to buy BTC, a risk is emerging: If the stock trades at or near NAV [net asset value], continued equity issuance can dilute rather than create value.

When the company’s equity trades at a premium to its bitcoin holdings, it can issue new shares at-the-market to accumulate more bitcoin, increasing BTC per share and creating a reflexive flywheel.