Strategy Shares Plunge as Bitcoin Premium Evaporates

Strategy Inc. is confronting its most severe market downturn in nearly two years. The leading Bitcoin-focused company now sees its stock trading below its net asset value for the first time in 2024, representing a historic breakdown in investor confidence. This development raises fundamental questions about why the firm’s business model—which previously commanded substantial premiums over its underlying Bitcoin holdings—is faltering at this particular moment.

The crucial turning point arrived on Friday when Strategy shares collapsed to $201.80, representing a staggering 60% decline from their November 2024 peak of $543. Most significantly, the market value to net asset value (mNAV) ratio dropped to 0.977x. This means investors are now paying less for the Read more...