Strategy has been trading for many years at a level higher than the value of the Bitcoin hold, which has enabled companies to be more flexible in expanding the Bitcoin position through equity and financing. However, as stock prices continue to fall, the premium has largely disappeared and the market has changed in its pricing.
Enterprise valuation lower than bitcoin holding
According to the report, Strategy currently has a value of approximately $50.4 billion, while its Bitcoin holdout is estimated at about $51.1 billion per unit of $60,000. This means that the market valuation of the whole company is lower than the total value of bitcoin on its books.
It is mentioned that Strategy ' s share price has fallen to approximately $82, about 85 per cent below the November 2024 height. In such a case, a company that continues to issue new shares at current prices may result in a small share because the price of the sale is lower than the value of its lower asset.
Long-standing BTC premium disappears.
The so-called enterprise mNAV, which is usually divided by the value of the enterprise by the size of the Bitcoin reserve, is used to observe the premium or discount levels of the company ' s stock prices relative to the assets held in currency. Over the past few years, investors have generally been willing to give Strategy a valuation that is significantly higher than their Bitcoin holdout, which is also an important basis for the company ' s continued financing and for the increase of Bitcoin.
Now mNAV is down to 1, which means this premium price is no longer valid. The market is worried that Strategy is becoming more and more like a closed fund, rather than an operating company with greater growth and financial flexibility.
Market concerns approaching closed fund pricing
It was mentioned that similar closed products had long been higher than lower-level asset transactions when demand was strong; however, after market sentiment had weakened, there could be continued discounts. Such discounts are often not easily repaired quickly, owing to the lack of effective mechanisms for redemption.
However, Strategy is not identical to the traditional closed trust. The company still has a variety of capital operating instruments, including the issuance of debt or equity when conditions are right, foreclosure or refinancing of existing securities, and the use of software operations to generate cash flows and to proactively restructure capital.
This means that while the market is lowering its valuation premium, Strategy retains some operating space. The next focus for investors will be on whether their financing capacity will be reduced and whether companies will also be able to sustain their past model of relying on capital markets for the continued expansion of bitcoin positions.