Strategy’s market valuation has fallen below the estimated worth of the bitcoin it holds, marking a notable shift in investor perception of the Michael Saylor-founded company’s crypto-focused strategy. The milestone comes amid a protracted decline in bitcoin prices and a broader cooling of sentiment in crypto markets.
Investors have watched the company’s "mNAV" closely - a metric defined as enterprise value relative to the value of the company’s bitcoin holdings - since CEO Phong Le warned late last year that the firm could consider selling bitcoins if that ratio dropped below 1. According to the company’s website, the ratio now stands at 0.99, which implies the enterprise value is lower than the balance-sheet value of the bitcoin it holds.
In a regulatory filing earlier this month, Strategy reported its first bitcoin sale since 2022, a move that signals a change in approach for the world's largest corporate holder of bitcoin. The company also disclosed a bigger first-quarter loss, with the decline in bitcoin prices weighing on the value of its substantial crypto positions.
Market pricing reflects the shift. The company’s market capitalization at last close was $29.54 billion, less than half of its peak valuation of over $71 billion recorded in 2024. Its shares have fallen by more than 45% so far this year.
"It’s bad news for overall investor sentiment toward crypto and bitcoin, which is already close to rock bottom," said Nic Puckrin, cross-asset analyst and founder of Coin Bureau. "MSTR was the one digital treasury company that investors continued to have faith in, but that faith is now eroding. We’re already seeing this reflected in the bitcoin price."
Per the company’s website, Strategy last reported holding 847,363 bitcoin. Based on bitcoin’s Sunday closing value of $59,577.82, those holdings would be worth roughly $50.4 billion. Bitcoin itself has been trading near 20-month lows, last quoted at $59,897.5, a level that represents roughly a 50% decline from its all-time high of $126,223.18 in October last year.
Crypto markets overall have struggled this year, with heightened volatility, investor focus on large expected initial public offerings, and ongoing outflows from exchange-traded funds that track the asset class cited as contributing factors to the market downturn.
Is MSTR a bargain right now? Some investors and platforms point to valuation tools to assess the company. One such approach promoted alongside market commentary advertises a Fair Value calculator that uses a mix of 17 industry valuation models to evaluate stocks, including MSTR. Readers should note that those tools are presented as a way to determine whether shares represent a buying opportunity.
The current situation leaves Strategy at the center of debate about corporate bitcoin allocations: whether a large corporate treasury strategy remains viable when the market value of the underlying crypto swings dramatically, and whether sales of holdings alter investor trust in companies that positioned themselves as digital treasuries.