Strategy (Nasdaq: MSTR), formerly MicroStrategy, has seen its fortune decline of late as the leading Bitcoin (BTC) treasury's stock has dropped by a drastic 60% from its peak.
The MSTR stock is exchanging hands at $224.20 at the time of writing, nearly 60% lower than its all-time high (ATH) of $543.
The shocking slump comes amid a decline of more than 10% in BTC's price within a month.
Related: Legendary short seller closes MicroStrategy trade
Moreover, Strategy's multiple-to-net-asset-value (mNAV) has been approaching 1x — a concern raised by famous short-seller Jim Chanos while closing his MSTR short.
mNAV is an indicator that measures how Strategy's stock price compares to the value of its Bitcoin holdings per share, minus debt and preferred equity.
When mNAV hits 1.0x, the company's shares will be valued exactly equal to its Bitcoin holdings. Anything below that would value Strategy less than its Bitcoin holdings.
Currently, the company's mNAV stands at 1.22.
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Leading financial analyst Andreas Steno Larsen said Strategy will have an incentive to sell BTC to buy back equity if mNAV goes below 1.
"It is not given that they will sell btw," he added.
Popular crypto trader James Wynn wondered if Wall Street was trying to force Strategy to sell its BTC so that they could scoop it up.
On the charts, BTC has been following MSTR since 2020, popular crypto analyst Ted Pillows highlighted .
Recently, both have also been sitting below their weekly 50-SMA, he added.
"If history is anything to go by, Bitcoin could lose this weekly level. Or do you think this time is different?"
Crypto analyst Toby Cunningham speculated that when Strategy will collapse and co-founder Michael Saylor will sell Bitcoin, it will be near the bottom of the next bear market.
He said traders should be ready to buy BTC and not let only Wall Street grab it when Strategy dumps it.
Strategy currently holds 641,692 BTC worth more than $65 billion as the king coin trades at $101,480.28.
Related: MicroStrategy accounts for 16% of all 2024 equity raised — mostly to buy Bitcoin
This story was originally reported by TheStreet on Nov 12, 2025, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.
