For years, the company traded at a significant premium to the value of its bitcoin holdings, giving it broad flexibility to raise capital when needed — an advantage that Michael Saylor and his team actively leveraged.
Now, Strategy’s (MSTR) enterprise multiple to net asset value (mNAV) has slipped below 1 for the first time.
This marks a notable shift for the Saylor-led firm, which had long enjoyed valuations far exceeding its bitcoin reserves, enabling it to tap markets efficiently for funding. That dynamic has now reversed.
With the stock falling to շուրջ $82 — roughly 85% below its November 2024 peak — the company’s enterprise value has dropped 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 pricing the entire business below the value of the bitcoin it owns. At this point, issuing new equity becomes dilutive, as shares would be sold for less than the underlying asset value.
The enterprise mNAV is derived by dividing total enterprise value — including market capitalization, debt, and preferred equity, minus USD reserves — by the firm’s bitcoin holdings.
While the company still retains the ability to issue shares, doing so under current conditions could attract criticism. Recent bitcoin acquisitions have already diluted common shareholders, prompting backlash from parts of the market.
There is growing concern that Strategy is being treated more like a closed-end fund than an operating company. Comparable vehicles, such as the Grayscale Bitcoin Trust before its ETF conversion, have historically swung from trading at large premiums to persistent discounts as sentiment cooled. These structures often struggle to close such gaps due to limited redemption mechanisms.
That said, Strategy differs from traditional closed-end funds in that it has multiple strategic options available — including raising debt or equity when favorable, refinancing obligations, generating cash flow from its core software operations, and actively managing its capital structure.
