**[WSJ: Strategy's Self-Created mNAV Indicator Has Flaws, May Ultimately Have to Tap into Bitcoin Reserves]** Foresight News reports, according to The Wall Street Journal, Strategy's self-created mNAV indicator, used to measure its valuation relative to Bitcoin holdings premium, has systemic flaws. The indicator calculates enterprise value using the face value of debt and preferred stock rather than market value, artificially inflating the numerator. For example, on June 26, Strategy officially reported an mNAV of 0.99, but if calculated using market value, it would only be 0.89. As of last Thursday, the official figure was 1.09, while the actual corrected value was approximately 1.04. Strategy's stock price has fallen 75% over the past year, and mNAV dropped below 1 last month, signaling the breakdown of its "snowball model" of financing Bitcoin purchases with premium stock. Previously, the company's board had authorized the sale of up to $1.25 billion worth of Bitcoin to repurchase shares and pay interest and preferred stock dividends. The article notes that Strategy holds 4% of the global Bitcoin supply, and a large-scale sale could further suppress Bitcoin prices. The company estimates its current $2.55 billion cash reserves can sustain interest and dividend payments for approximately 17 months, but if mNAV continues to stay below 1, it may ultimately have to tap into its Bitcoin reserves.