A major milestone has rattled investor confidence in Strategy, the Michael Saylor-founded company known for its massive bet on bitcoin — its overall market valuation has dropped below the total worth of its bitcoin holdings for the very first time.
Investors have been closely watching a metric known as “mNAV,” which measures the company’s enterprise value against the value of its bitcoin on hand. The focus on that number intensified after CEO Phong Le stated late last year that the company might consider selling off some of its bitcoin if the ratio dropped under 1.
As of the most recent market close, that ratio sits at 0.99, meaning the company’s enterprise value is now lower than the value of the bitcoin it carries on its balance sheet, according to the company’s own website.
Earlier this month, Strategy disclosed its first bitcoin sale since 2022 in a regulatory filing — a significant departure for the world’s largest corporate holder of the cryptocurrency.
The company also reported a larger-than-expected loss for the first quarter, driven by a sharp drop in bitcoin prices that eroded the value of its substantial crypto portfolio.
Strategy’s market capitalization as of the latest close stood at $29.54 billion — less than half of its record high valuation of more than $71 billion reached in 2024. The company’s stock has fallen more than 45% since the start of this year.
According to the company’s website, Strategy currently holds 847,363 bitcoin, a stash that would be valued at roughly $50.4 billion based on bitcoin’s Sunday closing price of $59,577.82.
Bitcoin itself was recently trading near 20-month lows at $59,897.50, having lost about half its value from its all-time high of $126,223.18 set in October of last year.
Nic Puckrin, a cross-asset analyst and founder of Coin Bureau, offered a stark assessment of the situation. “It’s bad news for overall investor sentiment toward crypto and bitcoin, which is already close to rock bottom,” he said.
Puckrin added: “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.”
The broader cryptocurrency market has struggled throughout this year, weighed down by heightened volatility, investor attention shifting toward anticipated major IPOs, and ongoing outflows from exchange-traded funds that track digital assets.
