MSTR Slides Amid Bitcoin Drop, But Still Trades Above Net Bitcoin Value

Thursday saw another rough session for markets, with bitcoin (BTC) retreating nearly 3% to $98,600. The decline weighed heavily on Strategy (MSTR), the largest corporate holder of BTC, which dropped 6.6% to $210. Year-to-date, the stock has fallen roughly 30%, and it is down 36% compared with the same time last year, though it remains significantly higher than pre-Bitcoin treasury levels in August 2020.

The sell-off has reignited discussions on social media about MSTR potentially being undervalued relative to its BTC holdings. The company currently holds 641,692 bitcoins, worth about $63.2 billion — roughly 5% more than the stock’s $60 billion market capitalization. This raw comparison might suggest an mNAV (market value to net asset value) below 1, implying the stock could be trading at a discount.

However, this calculation does not account for Strategy’s preferred shares and debt, which take precedence over common stock in claims on the company’s assets. Including these obligations pushes the enterprise value to $75.4 billion, approximately 20% above the value of its bitcoin holdings. Strategy’s dashboard confirms an mNAV of 1.19 at press time, highlighting that, despite the recent drop, the stock is not trading below its BTC value.

While some investors may view the current levels as attractive, the reality is that Strategy common shares remain priced above the company’s bitcoin stack when considering all obligations, underscoring that caution is warranted even amid the recent pullback.