mNAV MoaGuide › Why dilution changes the number
Why dilution changes the number
Last updated 2026-11-07
Dilution means the share count grows, so each share represents a smaller slice. Treasury companies lean heavily on convertible notes, preferred stock and options, so mNAV changes depending on whether you count shares "as of today" or "after everything converts".
A pizza analogy
A pizza is cut into 8 slices and 8 people hold one each. But two more people hold "coupons for a slice later". When the coupons are redeemed the pizza is effectively 10 slices and each share drops from 1/8 to 1/10. The coupons are convertible notes, options and warrants; the slices are shares.
Two share counts
| Basic shares | 421,977,908 | shares actually outstanding today; the basis of market cap on this site |
| Fully diluted shares | 451,577,000 | assuming every coupon converts; only company-reported figures are used |
For Strategy (MSTR) the gap is about 7.0%. Market cap on fully diluted shares is larger by that much, and so is mNAV.
Which is why there are four numbers
Two share counts (basic, fully diluted) × two debt treatments (excluded, included) = four combinations. This site shows three of them in the calculation ladder on each company page.
| Simple mNAV | 0.84× | basic shares · no debt |
| mNAV (headline) | 1.08× | basic shares · with debt |
| Company style | 1.13× | fully diluted shares · with debt — the definition Strategy and others publish |
(The fourth, fully diluted without debt, appears only in the company-page calculation table.) When a company's official mNAV differs from this site's headline figure, this is almost always the reason, and the third rung of the ladder will match.
Is dilution bad?
Not by itself. If the coins bought with new shares grow faster than the share count, coins per share actually rise. The coins-per-share growth from the previous guide is exactly that test. Conversely, if convertibles turn into shares after the premium has vanished, coins per share fall.
One caveat: the fully diluted count is the company's own assumption. Depending on conversion terms (the price above which notes convert) some of it may never happen, so this site shows the third rung only for companies that publish a fully diluted figure.
Where to find it
- The third rung of the calculation ladder under the title of each company page (e.g. MSTR), with the fully diluted count and source link.
- The "shares" and "fully diluted shares" rows of the inputs table — filing date and link for each.
Not investment advice · numbers in this article are live