Strategy’s MSTR Stock Hits Below 1x Bitcoin Value Premium

Strategy Stock Falls Below Bitcoin Holdings Value as mNAV Drops Under 1x After 28 Months

  • The ratio comparing the stock price of Strategy (formerly MicroStrategy) to its Bitcoin (BTC) holdings has fallen below 1.
  • Since July 2023, owning BTC directly would have yielded better returns than holding Strategy’s stock (MSTR).
  • The market capitalization of MSTR is now less than the value of the bitcoin the company holds.
  • The “multiple-to-Net Asset Value” (mNAV) metric, once as high as 3.2x in November 2024, has dropped to 0.96x, signaling a major decline in investor premium.
  • Strategy has altered the presentation of its mNAV metric on its website, now showing an enterprise value mNAV of 1.21x that accounts for preferred shares and net debt.

Strategy, the company known for holding a large digital asset treasury of bitcoin, has seen the premium of its stock price relative to its bitcoin holdings fall below 1x after 28 months of decline. This means that the market now values the company’s shares at less than the value of the bitcoin it owns.

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Since July 2023, investors would have been better off purchasing bitcoin directly rather than buying Strategy‘s common stock (MSTR). The company’s market capitalization is currently lower than the total worth of its bitcoin assets.

The measure known among investors as “multiple-to-Net Asset Value” (mNAV), which compares the stock price to the net asset value of bitcoin held, reached a peak of 3.2x in November 2024. This figure has now dropped to 0.96x, representing a loss of investor confidence in the stock’s premium.

This mNAV metric was originally popularized by Strategy’s community, called Irresponsibly Long MSTR, to show the premium investors paid over the direct bitcoin holdings. Despite company warnings that shareholders do not own and may never redeem bitcoin directly, the metric was widely accepted and cited by top management, including founder Michael Saylor and CEO Phong Le.

Currently, Strategy has adjusted how it presents this metric on its website to avoid showing the under-1x figure prominently. The site now shows an “enterprise value mNAV” of 1.21x, which includes approximately $15 billion in value from preferred shares and offsetting net debt.

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For a full view of the company’s holdings and related data, refer to the Bitcoin Treasuries public companies page. Additional historical discussion on the stock’s mNAV can be found in related coverage such as the Michael Saylor continues to dilute MSTR after modifying promise article.

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