Strategy Inc's Bitcoin treasury slides as market premium falls below 1

Strategy Inc, the world's largest corporate Bitcoin holder, disclosed a treasury of 846,000 bitcoins worth about $49.7 billion, roughly 4 % of all existing BTC. After a modest sale of 32 bitcoins in early June, the firm announced a larger divestiture of over $200 million between June 29 and July 5. This activity coincided with the company's market‑to‑net‑asset‑value ratio (mNAV) slipping to 0.99 – the first time it has fallen below the 1.0 threshold, signalling that investors now price the stock at a discount to its Bitcoin holdings.

Analysts highlighted the significance of the drop, saying the mNAV “represents the definitive gauge of institutional confidence in Strategy’s financial architecture” and that falling below 1 “marks a paradigm shift and a historic anomaly.” The firm’s model, previously described as a self‑reinforcing “flywheel,” depended on a market premium that allowed it to issue new shares and debt to buy more Bitcoin. With the premium eroding, the strategy's sustainability is in question, prompting concerns about its impact on Bitcoin prices and broader market sentiment.