The market is now valuing the Michael Saylor-led firm Strategy at less than the value of its bitcoin holdings.
The company's stock has fallen roughly 85% from its 2024 all-time high to around $82, pushing its enterprise value to about $50.4 billion. That is below the approximately $51.1 billion value of its bitcoin reserves at the current price of $60,000 per coin.
This is a significant shift. For years, investors valued Strategy well above its bitcoin net asset value, providing the company with enormous flexibility to raise capital.
The key metric, called enterprise mNAV, has now fallen below 1. This means issuing new shares would be dilutive to existing stockholders because the company would be selling equity at a price below the value of its underlying assets.
The situation has drawn criticism from the community. Some observers now argue that Strategy is trading more like a closed-end fund than an operating company.
However, analysts note that Strategy still has multiple levers to manage its capital structure that a passive fund does not. These include issuing debt or equity when it is accretive, redeeming or refinancing securities, and generating operating cash flow from its core software business.