Ripple CEO Backs Bitcoin, Criticizes Saylor’s Strategy Impact

For years, Strategy traded at a premium to the value of its bitcoin holdings, giving the company significant flexibility to raise capital — an advantage Michael Saylor and his team actively exploited.

That premium has now reversed. Strategy’s (MSTR) enterprise multiple to net asset value (mNAV) has slipped below 1, marking a notable shift in how the market values the firm.

With shares around $82 — roughly 85% below their November 2024 peak — the company’s enterprise value has fallen to about $50.4 billion. Its bitcoin holdings, however, are worth approximately $51.1 billion at a $60,000 BTC price. In effect, the market is now valuing the company at less than its underlying bitcoin assets, making any new equity issuance dilutive.

Enterprise mNAV is calculated by dividing enterprise value — which includes market capitalization, debt, and preferred stock, minus cash — by the value of bitcoin holdings.

While issuing new shares remains an option, doing so at current levels could draw further criticism. Recent bitcoin purchases have already been seen as dilutive to common shareholders, fueling investor backlash.

There is growing concern that Strategy is being treated more like a closed-end fund than an operating business. Similar products, such as the Grayscale Bitcoin Trust before its ETF conversion, often traded at premiums during strong demand but later shifted to persistent discounts as sentiment weakened. These discounts tend to persist due to the lack of a redemption mechanism to align share prices with underlying asset value.

That said, Strategy still has more flexibility than traditional closed-end funds. It can issue debt or equity when accretive, refinance obligations, generate cash flow from its software business, and actively manage its capital structure.