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Strategy’s enterprise value fell below the value of its Bitcoin holdings for the first time, with its modified net asset value (mNAV) ratio closing at 0.99 on Friday, a threshold CEO Phong Le said in late 2025 could prompt the company to sell Bitcoin.
The milestone comes weeks after Strategy disclosed its first Bitcoin sale since 2022 and reported a wider quarterly loss, as Bitcoin trades near a 20-month low.”
As of Friday’s market close, Strategy’s enterprise value relative to its Bitcoin holdings known as the modified net asset value (mNAV) stood at 0.99, according to the company’s website. That means the company’s enterprise value is now slightly lower than the value of the Bitcoin held on its balance sheet, a level investors have closely monitored since management discussed the metric late last year.
The decline in Strategy valuation has drawn attention because of comments made by Chief Executive Officer Phong Le in late 2025. At the time, he suggested the company could consider selling Bitcoin if its mNAV ratio fell below 1.
Earlier this month, Strategy disclosed its first Bitcoin sale since 2022 in a regulatory filing, marking a notable departure from its long-standing strategy of accumulating the cryptocurrency.
The company also reported a wider first-quarter loss after falling Bitcoin prices significantly reduced the value of its digital asset portfolio.
Based on figures published on the company’s website, Strategy currently holds 847,363 Bitcoin, valued at approximately $50.4 billion using Sunday’s closing Bitcoin price of $59,577.82. Despite that sizable reserve, the Strategy valuation reflected by public markets has fallen behind the underlying value of those holdings.
The company’s market capitalization closed at $29.54 billion, less than half of its record valuation of more than $71 billion reached in 2024. Meanwhile, its shares have declined more than 45% since the start of the year.
The deterioration in Strategy valuation coincides with one of Bitcoin’s weakest trading periods in nearly two years.
Bitcoin was last changing hands around $59,897, close to a 20-month low and nearly 50% below its all-time high of $126,223.18 recorded in October 2025.
The prolonged decline has affected not only Strategy but also broader cryptocurrency markets, where investors have become increasingly cautious amid heightened market volatility and continued capital outflows from spot exchange-traded funds (ETFs).
Analysts say the weakening Strategy valuation reflects broader concerns about crypto assets rather than company-specific issues alone.
“It’s bad news for overall investor sentiment toward crypto and bitcoin, which is already close to rock bottom,” — Nic Puckrin, Cross-Asset Analyst and Founder of Coin Bureau.
Puckrin noted that Strategy had remained one of the few publicly traded companies that continued attracting investor confidence despite prolonged market weakness.
For years, Strategy has been viewed as the benchmark corporate Bitcoin investor, with its share price often serving as a proxy for institutional confidence in the cryptocurrency market. However, the recent decline in Strategy valuation suggests that investors are becoming increasingly cautious about assigning a premium to companies whose value depends heavily on digital assets.
According to Puckrin, the company’s changing market position could have broader implications for cryptocurrency sentiment.
“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.” — Nic Puckrin, Cross-Asset Analyst and Founder of Coin Bureau.
The comments underscore growing concerns that weakening confidence in Strategy could spill over into the broader digital asset sector, especially as institutional investors reassess exposure to cryptocurrency-linked companies.
The latest Strategy valuation milestone arrives during one of the cryptocurrency industry’s most challenging periods in recent years.
Investor enthusiasm has shifted toward anticipated public listings in other sectors, while cryptocurrency funds continue to experience sustained outflows. Combined with declining Bitcoin prices, those factors have reduced demand for companies whose valuations are closely tied to digital assets.
Although Strategy remains the world’s largest corporate holder of Bitcoin, the drop in Strategy valuation below the value of its cryptocurrency reserves suggests that investors are becoming less willing to pay a premium for indirect Bitcoin exposure.
Market participants will now closely watch whether Bitcoin prices stabilize and whether Strategy’s valuation recovers above its underlying digital asset value. Equally important will be the company’s future capital allocation decisions, particularly after signaling a willingness to sell Bitcoin under certain market conditions.
For now, the decline in Strategy valuation highlights the close relationship between corporate crypto strategies and broader market sentiment, illustrating how prolonged weakness in digital assets can reshape investor expectations even for companies with substantial Bitcoin holdings.
Primary Source: Reuters
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