Strategy’s shares fell 3.5% to $81.81, erasing 29% last week as Bitcoin’s selloff pushed its market cap below its Bitcoin NAV. The company carries $6.75bn in debt and $15.5bn in preferred securities while co-founder Michael Saylor hinted at buying more Bitcoin despite cash covering under a year of dividends.
Strategy’s shares slumped more than 3.5% to an annual low of $81.81, marking eight consecutive sessions of losses and erasing roughly 29% of its market value over the past week as Bitcoin’s price decline extended selling pressure.
For the first time, Strategy’s market capitalization slipped below the value of its underlying Bitcoin holdings, indicating investors are no longer paying a premium for its cryptocurrency assets and raising questions about its valuation model (mNAV).
The company holds $6.75 billion in outstanding debt and $15.5 billion in preferred securities, while its cash reserves cover under one year of dividend payments, highlighting potential liquidity strains if market pressures persist.
Co-founder and executive chairman Michael Saylor signaled plans to acquire more Bitcoin by sharing an acquisition-tracking chart, even as some market participants argue that selling part of the holdings could alleviate financial pressure.
