Bitcoin’s meteoric rise has captivated investors once again, yet a curious divergence is emerging between the cryptocurrency’s skyrocketing value and the performance of Strategy (MSTR), the company that once spearheaded corporate bitcoin adoption. As of today, bitcoin has surged approximately 13% this month, approaching the $110,000 milestone. In contrast, MSTR has seen its shares dip by 3%, now hovering around $372. This disparity has deepened since mid-May, casting shadows over the market’s perception of Strategy’s pioneering role.
Bitcoin’s Ascent vs. Strategy’s Descent
The growing chasm between bitcoin’s ascent and Strategy’s descent raises eyebrows. It’s a tale of two trajectories: bitcoin, the digital gold, continues to dazzle, whereas Strategy, despite its trailblazing status, seems to be losing its luster. Analyst Ben Werkman, who holds shares in Strategy, notes, “The widening gap highlights how Strategy’s first-mover advantage is being challenged by an increasing number of public companies adopting similar bitcoin strategies.” This follows a pattern of institutional adoption, which we detailed in Strategy’s $84B Bitcoin Expansion Plan Backed by Wall Street Analysts.
Indeed, data from BitcoinTreasuries.net shows a surge in public companies holding bitcoin on their balance sheets. Over 113 such firms exist globally, with 11 newcomers entering the fray in just the past 30 days. While many follow Strategy’s blueprint, the firm’s market premium, once a symbol of its leadership, is narrowing. The company’s multiple to net asset value (mNAV) now stands at 1.80, one of its lowest levels in the past year.
Understanding the mNAV Conundrum
So, what’s driving this mNAV contraction? For starters, Strategy’s mNAV, calculated by dividing the enterprise value by the market value of its bitcoin holdings, reflects the market’s valuation of the company relative to its digital assets. A lower mNAV signals potential challenges in issuing new equity without diluting existing shareholders. Yet, Werkman points out, “Even with a compressed mNAV, Strategy’s figure remains above 1x, suggesting there’s still some breathing room.”
Interestingly, Strategy’s latest bitcoin acquisition—4,020 BTC for $427 million—highlights a shift in funding strategy. Unlike previous bulk purchases, this acquisition was financed not solely through common stock but also through preferred securities. According to Werkman, 81.7% was funded via common stock, 15.9% through STRK, and 2.4% from STRF. This diversification hints at a tactical move to tap alternative instruments and mitigate shareholder dilution amid the mNAV crunch. For more context on their financial maneuvers, see Strategy Raising Another $21B to Buy Bitcoin, Posts Large Q1 Loss on BTC Price Decline.
A Glimpse into Strategy’s Future
As Strategy grapples with these dynamics, questions loom about its future trajectory. Can it reclaim its mantle as the go-to corporation for bitcoin treasury strategies? Or will increasing competition erode its standing further? Some analysts are cautiously optimistic. “The company’s adaptability in funding strategies shows resilience,” says Werkman. Yet, with more companies entering the bitcoin arena, Strategy’s path forward isn’t set in stone.
While the rise of bitcoin remains a beacon of promise, the real intrigue lies in how Strategy navigates this evolving landscape. Its next moves could redefine its place in the corporate bitcoin narrative—or mark a further departure from its pioneering roots.
In the coming months, all eyes will be on Strategy’s strategic decisions and market maneuvers. As bitcoin continues its upward march, the real story might just be how this once-dominant player adjusts—or doesn’t—to the shifting sands of the cryptocurrency world. The stakes? Higher than ever.
Source
This article is based on: Bitcoin Surges Ahead as Strategy Lags
Further Reading
Deepen your understanding with these related articles:
- Bitcoin Surges Past $94,000 as Institutional Interest and Market Optimism Grow
- Bitcoin Surpasses $95K Amid Resilient U.S. Stocks, Analysts Voice Concerns Over Market Perception (openai)
- Metaplanet Registers U.S. Treasury Arm to Grow Its Bitcoin Reserve Strategy
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
