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For seven consecutive months, Strategy Inc. has been trading at a discount to the very asset that defines its entire corporate identity. The company formerly known as MicroStrategy, which pivoted its business model into what amounts to a publicly traded Bitcoin vault, now carries a market capitalization somewhere between $30B and $37B. The Bitcoin it holds is worth roughly $50B to $54B.
Strategy’s whole pitch to Wall Street has been straightforward. Buy our stock, get leveraged exposure to Bitcoin without the hassle of holding it yourself. For a while, that pitch worked spectacularly. The stock traded at a significant premium to its net asset value, with investors happily paying extra for the convenience and the perceived genius of CEO Michael Saylor’s accumulation strategy.
That premium started evaporating around November 2025. The company’s mNAV ratio, which measures market cap relative to the value of its Bitcoin holdings, compressed to near 1.0 and has stayed there or below ever since.
The numbers behind the discount
Strategy holds 847,363 BTC as of late June 2026, acquired at an average cost of approximately $75,651 per coin. That puts the total cost basis at roughly $64.1B. The current value of those holdings sits around $50B to $51B depending on the day, which means the company is underwater on its aggregate position.
In late May 2026, Strategy sold 32 BTC for approximately $2.5 million. That was the first time Strategy had sold any Bitcoin since 2022. The sale, combined with concurrent stock sales, sent shares tumbling roughly 5.85%.
The stock hitting seven-month lows in late 2025 was driven by falling Bitcoin prices alongside the disappearing premium. It suggested that the market had repriced the entire concept of a leveraged Bitcoin treasury company.
Strategy’s ability to raise capital through equity or convertible debt issuance becomes significantly harder when the stock trades at a discount to NAV. The company’s entire accumulation engine depends on issuing securities at a premium, then using the proceeds to buy more Bitcoin. When the premium disappears, that flywheel grinds to a halt.
The company’s cost basis of roughly $75,651 per BTC means that any sustained period with Bitcoin trading below that level puts the entire portfolio in the red, creating potential pressure to sell more Bitcoin to service debt or maintain operations.
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