Strategy Is Worth Less Than Its Bitcoin as Crypto Prices Slide

Strategy Chairman Michael Saylor urged investors to ‘HODL,’ or hold on for dear life, as the price of Bitcoin and other cryptocurrencies slumped. (Getty Images)

Key Points

• Strategy’s market value was lower than its Bitcoin holdings, ending Thursday with a market capitalization of $59.92 billion.
• Strategy’s shares fell 7.2% to $208.54 on Thursday and were declining again on Friday.
• Jim Chanos closed his hedged short position on Strategy, expecting its market multiple of net asset value to decline to 1.

Shares of Strategy , the world’s largest corporate holder of Bitcoin , have been following the broader decline in cryptocurrencies. Investor enthusiasm for the company’s Bitcoin treasury strategy also seems to be fading.

As of the market close Thursday, Strategy’s market value was lower than the value of its Bitcoin holdings. The software-company-turned-investment-vehicle for Bitcoin ended the session with a market capitalization of around $59.92 billion.

Shares ended the session down 7.2% at $208.54 and looked set to extend their losses for a fifth consecutive day on Friday as they fell 2.2% to $203.96 Friday afternoon.

Despite the recent market tumult, Strategy co-founder and chairman Michael Saylor was his usual optimistic self on Friday. Saylor tweeted a reminder to Bitcoin investors to “HODL,” or hold on for dear life. Strategy didn’t immediately respond to a request for comment.

As of Nov. 10, Strategy held 641,692 Bitcoins acquired for around $47.54 billion in total, according to a securities filing. At last check, Bitcoin was down 1.4% over the past 24 hours to $96,662, according to CoinDesk data. This places the value of Strategy’s holdings at around $62 billion.

Strategy was trading at an implied premium of $14.4 billion to its Bitcoin holdings, down from a peak of $80 billion in November 2024 and a recent peak of $70 billion in July 2025.

Jim Chanos, founder of Kynikos Associates, a firm focused on short selling—or a bet that a stock will fall—disclosed on Nov. 8 that he’d closed out his hedged position on Strategy. In a post on X, Chanos pointed to Strategy’s market multiple of net asset value (mNAV), which he expects to decline to 1.

Created with Highcharts 9.0.1Sources: CoinDesk (Bitcoin); Kraken (Ethereum, Solana, XRP)

Created with Highcharts 9.0.1BitcoinXRPEthereumSolanaNov. 11Nov. 14-17.5-15.0-12.5-10.0-7.5-5.0-2.502.55.0%

If mNAV is above 1, that indicates a stock is trading at a premium to the value of its Bitcoin holdings. As of Thursday’s close, this metric stood at 1.24 times, according to Strategy’s website. But the gap is growing smaller and smaller.

“While we still believe there is more room for mNAV compression, the thesis [betting on the stock’s decline] has largely played out,” Chanos wrote. “We recommend letting others chase the last leg of the trade as MSTR inevitably marches towards a 1.0x mNAV.”

Strategy investors are doubting the company’s ability to service its preferred dividends and debt interest costs, driving shares lower. The company unveiled its first non-U.S. preferred offering on Nov. 7, when it offered 7.75 million shares of Euro-denominated preferred with a 10% annual dividend at a price of 80 euros a share.

Strategy uses these offerings to raise capital to fund its Bitcoin buys, but the approach has drawn scrutiny from some investors. The company has $689 million of annual preferred and debt servicing payments and little income to make those payments.

Strategy’s STRK, STRC, STRD, and STRF preferred stocks were mostly trading higher Friday, with the exception of STRK, which ticked down 0.7%.

All four securities have fallen below their simple 50-day moving average, a classic bearish signal that indicates a potential downtrend.

While Strategy was established as a software company in 1989, today this business is overshadowed by its massive Bitcoin holdings, which yield nothing.

The price of Bitcoin has also been on the decline, as it crossed below $100,000 for the first time since May last week. The crypto selloff has deepened as Wall Street unloads risk-on assets amid concerns over the stretched valuations of artificial-intelligence stocks.

The tech-heavy Nasdaq Composite declined 2.3% on Thursday, marking its worst session in more than a month. The index was 0.3% higher on Friday.

The recent slump has only been compounded by uncertainty over the potential for an interest-rate cut in December. If a cut doesn’t occur, that spells doom for cryptos, which become less appealing relative to interest-bearing investments like bonds and savings accounts when borrowing costs are higher.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com