Strategy Stock Drops 29% to $81.81 Low, microNAV Dips Below 1
STRC•Strategy shares fell to a low of $81.81 after a 29% drop last week as Bitcoin prices plunged, pushing microNAV below 1 for the first time. The company carries $6.75B debt, $15.5B preferred securities and cash for under one year of dividends, while Michael Saylor signaled more Bitcoin purchases.
1. Stock Performance and microNAV Decline
Strategy’s shares plunged 29% last week to an annual low of $81.81 as a sharp sell-off in Bitcoin extended pressure on the stock. This slide dragged its microNAV—market cap divided by Bitcoin holdings—below 1 for the first time, signaling investors no longer pay a premium for its crypto assets.
2. Balance Sheet and Financial Obligations
The company reports $6.75 billion in outstanding debt and $15.5 billion in preferred securities, while its cash reserves cover less than one year of dividend payments. These obligations weigh heavily on valuation, especially given the volatility of Bitcoin holdings.
3. Management’s Strategic Response
Executive chairman Michael Saylor posted an acquisition-tracking chart hinting at additional Bitcoin purchases, suggesting confidence in long-term asset appreciation. Market participants debate whether further accumulation or a partial sale of holdings would better shore up the balance sheet.
