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The world’s largest Bitcoin 
$92,384 reserve company, Strategy, has continually been at the heart of speculative rumors for years. The breach of Bitcoin cost during the FTX collapse marked a perilous phase, and as the market value nears its net asset value (MNAV) of 1, renewed concerns regarding financial problems have emerged. The CEO of Strategy has addressed these debates to clarify their plans and position.
Strategy and Bitcoin
Since 2020, Michael Saylor’s company started accumulating Bitcoin. Once a critic of Bitcoin, Saylor became interested in it and, within a year, attracted Elon Musk into the fold as well. By focusing the core business on accumulating Bitcoin, Michael Saylor achieved unprecedented success, surpassing the record stock price seen during the dot-com bubble.
Multiple publicly traded companies attempted to emulate Strategy’s success by adding Bitcoin and other cryptocurrencies to their reserves. The largest among these, BitMine, currently holds about 6% of the world’s Ethereum 
$3,149 supply.
Nearly 400 companies globally have established cryptocurrency reserves, fueling a wave of institutional adoption that significantly elevated the crypto market. However, fluctuations in Bitcoin prices have shifted trends, with some companies seeing their stock values drop below their MNAV, necessitating the sale of crypto assets to facilitate stock buybacks, with ETHZilla being one of the recent examples.
A company’s MNAV falling below 1 means the amount of Bitcoin held is less than its stock value. This scenario is akin to the negative premium seen with the GBTC trust. In 2024, when GBTC converted into an ETF, the negative premium was eliminated, and each share equated to a specific Bitcoin value.
Considering Bitcoin Sales
Strategy views selling Bitcoin as an option of last resort. The company may begin to sell its Bitcoin if the MNAV falls below 1 and capital can no longer be raised. CEO Phong Le emphasized that, presently, there are no plans to sell and that they intend to continue holding Bitcoin in the long term.
Investors have historically invested in Strategy as leverage since MSTR shares often outperform Bitcoin. This strategy allowed the company to borrow more, accumulate more Bitcoin, and subsequently elevate its stock value. Following Donald Trump’s election win, the company consistently made purchases in the range of 30-40 thousand Bitcoins.
It is vital, as mentioned earlier, for Strategy to maintain its net asset value (mNAV) above 1. The company is due to pay $800 million this year. The goal is to finance this based on premiums raised over mNAV.
“The more dividends we pay from all our instruments each quarter, the more the market begins to realize that we will pay these dividends even in a stagnant market. When we do that, prices begin to rise.” – Strategy CEO
Despite a massive drop in stock value, Strategy remains robust, holding a substantial reserve of 649,870 Bitcoins. The company’s mNAV is still above 1.
