Bitcoin Leads the Charge as Broader Market Strategy Falters

Strategy’s Stock Stalls as Bitcoin Rallies, Exposing Investor Doubts and Compressed Valuations

Bitcoin is breaking higher—but the same can’t be said for Strategy.

While the world’s leading cryptocurrency has surged nearly 13% this month, approaching the $110,000 mark, Strategy (MSTR) shares have slipped around 3%, hovering near $372. This growing divergence between BTC and the once-dominant corporate bitcoin accumulator reflects a market increasingly questioning the firm’s premium valuation and funding approach.

Strategy helped define the corporate bitcoin playbook, but that edge is starting to erode. As of this month, over 113 public companies globally now hold BTC on their balance sheets, up by 11 in just the past 30 days, according to BitcoinTreasuries.net. The proliferation of bitcoin-treasury strategies has made Strategy’s once-singular model far less unique.

A key metric underscores this shift: the firm’s mNAV—or market cap relative to the value of its bitcoin holdings—has dropped to 1.80, nearing year-lows. Investors are now pricing Strategy closer to the value of its BTC, signaling a waning appetite to pay a premium for the firm’s brand or management strategy.

The consequences are real. With a lower mNAV, Strategy’s ability to raise funds through new equity offerings becomes more limited without sparking shareholder dilution.

The company’s latest BTC acquisition—4,020 coins—is its smallest in recent months and was notably funded through a blended approach: 81.7% from common stock sales, 15.9% via STRK preferred shares, and 2.4% from STRF. This marks a tactical pivot toward leveraging preferred instruments, allowing Strategy to continue accumulating without overburdening common shareholders.

According to MSTR analyst Ben Werkman, the firm is actively optimizing its ATM (at-the-market) offerings to maintain flexibility in a tighter capital environment.

Despite these adjustments, the gap between Bitcoin’s price trajectory and Strategy’s stock performance may persist—unless the company can reignite investor enthusiasm or evolve its model to maintain its relevance in an increasingly crowded field of crypto-treasury players.