Strategy Inc shares dropped 6.2% in pre-open trading to $86.97, retracing gains from the prior session as investors reassessed the company’s newly announced capital plan. The board-authorized Digital Credit Capital Framework allows the potential sale of up to $1.25 billion in Bitcoin to replenish the company’s U.S. dollar reserve and creates two distinct $1 billion buyback programs - one for Class A common stock and one for the preferred Digital Credit securities. The framework marks a marked shift from Strategy’s long-standing stance of not selling Bitcoin.
Market participants homed in on the broader implications for Strategy’s Bitcoin financing model. The company’s market valuation has now dipped beneath the value of its Bitcoin holdings, pushing its mNAV ratio down to 0.99. That ratio had been cited by CEO Phong Le as a potential trigger for monetizing Bitcoin holdings, and its crossing appears to have helped catalyze investor concern.
Compounding the issue, the preferred security that underpins Strategy’s capital-raise program, STRC, is trading well below its $100 par value. That discount raises the cost of any future preferred-stock financing and hampers the company’s ability to buy additional Bitcoin on favorable terms. The market has also taken note that insiders sold roughly $25.9 million of shares over the past three months, a development traders view as an additional negative signal.
Bitcoin itself was weaker in pre-market trading, down about 1.4% and trading near $59,030. The cryptocurrency’s ongoing slide from its late-2025 peak near $126,000 directly pressures Strategy’s balance sheet, given the company holds 847,363 BTC on its books.
Taken together, the pre-market movement appears to reflect a reassessment of Strategy’s valuation model. What had initially been perceived as a proactive redesign of capital management is being balanced against three immediate facts: the company’s mNAV threshold has been breached, Bitcoin prices remain under pressure, and the preferred-stock funding channel is impaired. Those dynamics left Strategy near its 52-week low of $81.81 and well below its 52-week high of $457.22.
Contextual note - The company has authorized a potential $1.25 billion Bitcoin sale and two $1 billion buyback programs as part of a new framework approved by the board. The preferred security STRC is trading under par, insiders have sold about $25.9 million in shares over three months, and Strategy holds 847,363 BTC. Bitcoin was trading near $59,030, down approximately 1.4% in pre-market activity.