For years, investors valued the company significantly above the worth of its bitcoin holdings, giving Strategy ample flexibility to raise capital whenever needed — an advantage Michael Saylor and his team actively leveraged.
That dynamic has now shifted. Strategy’s (MSTR) enterprise multiple to net asset value (mNAV) has dropped below 1, marking a notable change for the company.
The stock has fallen to շուրջ $82, roughly 85% below its November 2024 peak, bringing its enterprise value down to about $50.4 billion. Meanwhile, its bitcoin holdings are valued at approximately $51.1 billion at a $60,000 BTC price. In effect, the market is now pricing the entire company at less than the value of its bitcoin reserves. At these levels, issuing new equity becomes dilutive, as shares would be sold below the value of the underlying assets.
The enterprise mNAV is calculated by dividing the company’s enterprise value — including market capitalization, total debt, and perpetual preferred stock minus cash reserves — by the value of its bitcoin holdings.
While Strategy can still issue new shares, doing so under current conditions may attract further criticism. Recent bitcoin acquisitions have already been viewed as dilutive to existing shareholders, sparking pushback from the community.
There is growing concern that the company is being valued more like a closed-end fund than an operating business. Similar vehicles, such as the Grayscale Bitcoin Trust before its ETF conversion, have historically traded at significant premiums during periods of strong demand, only to later shift into persistent discounts as sentiment weakened. Closed-end funds often struggle to close these gaps due to the absence of a redemption mechanism that allows arbitrage between share price and underlying asset value.
However, unlike traditional closed-end funds, Strategy retains several strategic options. These include issuing debt or equity when it is accretive, refinancing or redeeming securities, generating cash flow from its software operations, and actively managing its capital structure.
