strategy

Shares of Strategy Inc. (MSTR) — formerly known as MicroStrategy and led by Bitcoin evangelist Michael Saylor — have fallen to their lowest level since April, signaling growing pressure across the digital asset sector.
Once the poster child of Bitcoin corporate adoption, the stock has now dropped over 45% from its yearly high and is trading around $250. From its all-time peak, MSTR has plunged more than 53%, cutting its market capitalization from a record $128 billion down to $72 billion.

From Euphoria to Reality: The Digital Asset Finance Bubble Deflates
The wave of enthusiasm surrounding Digital Asset Tokenization (DAT) that swept through early 2024 has cooled dramatically.

Companies tied to Bitcoin financing and tokenized asset markets are now experiencing a sharp valuation correction, with analysts describing it as the bursting of the digital asset bubble.
Data shows that Strategy’s market-to-net-asset-value (mNAV) ratio has collapsed from 3.5 in November 2023 to just 1.08 today.

This key metric measures the gap between the company’s Bitcoin holdings and its total market valuation.
Likewise, the enterprise value (EV)-based mNAV ratio has fallen from over 4 to 1.31 — and analysts warn it could soon drop below 1, meaning the market would value the company lower than the Bitcoin it holds.

Bitcoin-Focused Firms Across the Board Are Suffering
MSTR’s slide is part of a broader industry downturn.

Other Bitcoin-related financial firms such as KindlyMD, Metaplanet, MicroCloud Hologram, and Semler Scientific have all suffered steep declines.
BitMine, founded by Tom Lee, has lost over 70% of its value from record highs, while Alt Sigma, Tron Inc., and The Smarter Web Company are all down double digits.
Most of these firms now trade at NAV multiples below 1, meaning their Bitcoin reserves exceed their total market value.

For instance, Japan’s Metaplanet currently has a market capitalization of $3 billion, yet its Bitcoin holdings are valued at over $3.2 billion — the company is literally trading below its net asset value.

Technical Indicators Point to Further Decline
From a technical standpoint, MSTR’s chart shows signs of continued weakness.

On October 22, the stock formed a “death cross” pattern — when the 50-day moving average drops below the 200-day average — a classic signal of a prolonged bearish trend.
The Average Directional Index (ADX) has surged to 28, its highest level since May, indicating a strengthening downtrend.

Both the Relative Strength Index (RSI) and Stochastic Oscillator remain in decline, reflecting sustained selling pressure.
Additionally, the Supertrend indicator remains above the current price, suggesting further downside potential — possibly toward the psychological level of $200.
“The market is correcting overblown valuations. Companies that bet everything on Bitcoin euphoria are now paying the price,” said one digital asset analyst.


Saylor Stays Defiant Amid the Sell-Off
Despite the sharp drop in MSTR shares, Michael Saylor continues to double down on his long-term Bitcoin strategy.

Strategy Inc. still holds over 226,000 BTC, maintaining its position as the world’s largest corporate holder of Bitcoin.
Saylor insists that the stock’s decline is a short-term correction, arguing that Bitcoin remains the most reliable store of value in the digital era.

Yet for many investors who bought during the hype, the current correction feels like a harsh return to reality.


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Shares of Strategy (formerly MicroStrategy) fell again after the company announced its first public offering of STRE Series A preferred shares. The move aims to raise additional funds for Bitcoin purchases and strengthen corporate liquidity.

While the offering is designed to support long-term growth, investors reacted cautiously, sending MSTR stock lower even after market close.

Strategy Launches STRE Preferred Stock Offering
The company announced a public offering of 3.5 million Series A STRE preferred shares with a 10% dividend rate.

Proceeds from the sale will be used for general corporate purposes, including acquiring more Bitcoin.
Major financial institutions such as Barclays, Morgan Stanley, Moelis & Co., TD Securities, and others are managing the offering.

Dividends on STRE shares will be paid in cash starting December 31, and if not paid on time, they will accrue at a rate of 10% + 1% annually.
Over the next 60 days, Strategy also plans to sell common shares of STRK, STRD, and MSTR to cover any deferred dividend obligations.


MSTR Stock Declines Amid Market Nervousness
MSTR shares closed at $264.68 on Monday, down 1.8%, and dropped another 2.6% after hours following the STRE announcement.

Over the past month, the stock has fallen more than 26%, bringing its year-to-date return down to 8.6%.
According to Yahoo Finance, MSTR traded between $259.85 and $270.36 with below-average trading volume.

Still, investment bank Canaccord Genuity maintains a “Buy” rating and raised its price target to $474, citing the company’s strong fundamentals.
Strategy reported Q3 2025 net income of $2.8 billion and unrealized Bitcoin gains of $3.9 billion, which continue to make it one of the most Bitcoin-exposed companies in the public market.

Unrealized Bitcoin Gains Fall Below $20 Billion
Strategy continues its aggressive accumulation strategy.

The company recently purchased an additional 397 BTC for $45.6 million at an average price of $114,771 per Bitcoin, increasing its total holdings to 641,205 BTC, acquired for a combined $47.49 billion.
According to Michael Saylor, founder and executive chairman, Strategy’s year-to-date Bitcoin return remains at 26.1%, even though the recent correction pushed unrealized gains below $20 billion.

The company’s Bitcoin net asset value (NAV) currently stands at $68.06 billion, down from over $30 billion in unrealized profits just a few months ago.


Bitcoin Weakness Weighs on Corporate Crypto Holdings
The renewed drop in Bitcoin’s price below $105,000 has weakened investor confidence in corporate Bitcoin strategies and so-called “Bitcoin bonds.”

Accumulation activity has slowed, as traders remain cautious amid a volatile macro and crypto environment.
At the time of writing, BTC is trading at $104,530, down 3% in 24 hours, with a daily range between $104,178 and $108,286.

Summary
The new STRE preferred stock offering highlights Strategy’s continued conviction in Bitcoin as a core corporate asset, but also exposes short-term investor concerns.

While the move will help raise capital for further BTC purchases, it adds short-term selling pressure on MSTR shares.
Despite the market downturn, Strategy remains the largest institutional holder of Bitcoin in the world, staying committed to its long-term vision of digital asset integration.



#strategy , #bitcoin , #stockmarket , #MichaelSaylor , #Investing

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Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“