🧠 What’s a NAV Discount?🧠 What’s a NAV Discount?

A NAV discount happens when a fund (like MSTR or a closed-end ETF) trades below the value of its underlying assets. For example, if MSTR’s Bitcoin holdings are worth $100 per share but the stock trades at $80, it’s at a 20% NAV discount. This can signal undervaluation—or market skepticism.

🔁 Action Triggers by Scenario🔁 Action Triggers by Scenario

Bullish Market

• BTC Active trims begin at predefined profit tiers (e.g., +100%, +200%)
• STRK may convert into MSTR if MSTR trades at a premium (e.g., 2x NAV)
• Other Bucket rotates into high-beta sectors like tech or AI
• Unassigned Reserve can be deployed into momentum plays

Bearish Market

• BTC Active rotation pauses or shifts into ultra-short bonds
• STRD may be redeemed to replenish Cash Buffer
• Other Bucket tilts toward gold, TIPS, or volatility hedges
• MSTR may be trimmed if NAV discount widens beyond threshold (e.g., −30%)

Correction Phase

• BTC Active trims selectively if prior gains exist
• MSTR may be re-entered if NAV discount exceeds 20%
• Other Bucket rotates into low-volatility ETFs or short-duration bonds
• Unassigned Reserve used for opportunistic entries into oversold assets