The market has valued Strategy lower than its Bitcoin reserves, with the company's enterprise mNAV dropping below 1, reports Reuters.
In December 2025, the market had already assessed the company's capitalization below the value of its BTC reserves, but that was based on the basic mNAV. This metric compares the company's market capitalization with the value of its digital assets on the balance sheet. The enterprise mNAV takes into account the entire capital structure: the market capitalization of common stock, debt, perpetual preferred stock, and dollar reserves.
As MSTR fell to around $82, the company's value dropped to $50.4 billion. With Bitcoin priced at approximately $60,000, Strategy's Bitcoin reserves were valued at about $51.1 billion.
Daily chart of MSTR on Nasdaq. Source: TradingView.“At these levels, issuing new shares becomes dilutive, as the company would effectively be selling equity below the value of its underlying assets,” noted CoinDesk.
Why This Matters for Strategy's Model
The premium on Bitcoin reserves has been a central part of Strategy's model. As long as the shares traded significantly above the value of BTC on the balance sheet, the company could issue new shares, acquire assets, and increase its per-share metrics.
With the enterprise mNAV falling below 1, the firm retains access to other capital management tools, including debt, preferred stock, refinancing, and cash flow from its core business. However, issuing common stock at these levels could increase pressure on shareholders due to dilution.
Reuters reminded readers of a December statement by Strategy CEO Fong Le. He indicated that the company might consider selling Bitcoin if the mNAV fell below 1 and other capital sources were exhausted. Le described this as a last resort, not a change in company policy.
From May 26 to May 31, Strategy sold 32 BTC for approximately $2.5 million at an average price of $77,135 per coin.
Source: Form 8-K.Reserves Remain Largest Among Public Companies
According to the official purchase table, as of June 22, Strategy held 847,363 BTC. The total acquisition cost was $64.1 billion, with an average purchase price of $75,651 per coin.
Source: Strategy.The latest disclosed purchase occurred between June 15 and June 21, when the company acquired 520 BTC for about $35 million at an average price of $67,068. Prior to that, Strategy bought 1,587 BTC from June 8 to June 14 and 1,550 BTC from June 1 to June 7.
With Bitcoin priced below $60,000, the company's position is below the average purchase price. Reuters estimated Strategy's reserves at approximately $50.4 billion, based on Bitcoin's closing price of $59,577.82 on Sunday.
Pressure Extends to STRC
The issue is not limited to common stock. In 2026, Strategy actively used perpetual preferred stock, including STRC, to finance Bitcoin purchases.
As a result, STRC has also come under pressure. On Friday, the shares dropped to a new low of around $71.40 before recovering to $74.72, approximately 26% below the par value of $100.
Source: TradingView.With STRC priced around $73, the effective yield on the shares approached 15%, heightening expectations for an increase in the dividend rate, according to The Block.
On June 23, Strategy filed with the SEC to transition STRC to semi-monthly payments. On June 29, Saylor presented a capital management framework for digital credit instruments aimed at supporting liquidity, maintaining long-term Bitcoin exposure, and managing obligations to holders of such securities.
Strategy announces a Digital Credit Capital Framework designed to strengthen Digital Credit, enhance liquidity, preserve long-term Bitcoin exposure, and support long-term value creation. $MSTR $STRC https://t.co/AUoUCtem53
— Michael Saylor (@saylor) June 29, 2026
Under the new policy, Strategy increased its dollar reserves to $2.55 billion. According to the company, this is sufficient to cover 17.4 months of expected dividend payments on preferred shares and interest expenses. The minimum reserve level is set at 12 months of such obligations.
The company also raised the annual dividend rate on STRC by 50 basis points to 12%. This change will take effect in July 2026. Strategy will evaluate the rate monthly based on STRC price, market yield, credit spreads, Bitcoin price and volatility, dollar reserve coverage, and overall capital structure.
Additionally, the board of directors approved a Bitcoin monetization program, allowing the company to sell the cryptocurrency to replenish its dollar reserves by up to $1.25 billion, fund dividend and interest payments, and repurchase credit instruments and MSTR shares.
Strategy also authorized buyback programs of up to $1 billion each for credit instruments, including STRC, STRF, STRD, and STRK, as well as for Class A common stock. The company emphasized that these buybacks will not be funded from dollar reserves.
Weakness Affects the Entire Bitcoin Treasury Sector
As noted by The Block, other companies using the Bitcoin treasury model are also feeling the pressure. The enterprise mNAV of Japan's Metaplanet was around 0.9, while David Bailey's Nakamoto was about 0.92. The exception is Strive, which, according to BitcoinTreasuries, had an enterprise mNAV of around 1.24.
Coin Bureau founder Nick Pakrin commented to Reuters that the current situation is “bad news for overall investor sentiment in cryptocurrencies and Bitcoin.”
“MSTR was that one digital treasury company that investors continued to believe in, but that faith is now eroding. We are already seeing this reflected in Bitcoin's price,” he said.
Recall that in June, Strategy founder Michael Saylor introduced the concept of a “digital asset stack.” He believes Bitcoin will evolve from a simple asset into the foundation of a global financial architecture.
At the end of the month, Ripple CEO Brad Garlinghouse described Strategy's model, which finances cryptocurrency purchases through the issuance of preferred stock, as harmful to the market.
Previously, CryptoQuant analysts concluded that Saylor's company should halt Bitcoin acquisitions and restore its dollar reserve after a sharp decline in dividend coverage for STRC.