Fez – Strategy, the world’s largest corporate holder of bitcoin, has lost a key market advantage after its valuation fell below the value of the cryptocurrency it owns, reflecting weakening confidence in both the company and the wider crypto market.
The company’s enterprise value now stands at 0.99 times the value of its bitcoin holdings, according to Reuters.
The figure, known as the “mNAV” ratio, has fallen below 1 for the first time.
Investors closely monitor this metric because company executives previously said selling bitcoin could become an option if the ratio remained below that level.
The development comes weeks after Strategy disclosed its first bitcoin sale since 2022, marking a significant change for a company that built its identity around holding the digital currency for the long term.
Strategy also reported a larger first-quarter loss after the decline in bitcoin prices reduced the value of its massive cryptocurrency holdings.
The company’s market capitalization stood at about $29.5 billion at the latest close, less than half of its record valuation of more than $71 billion reached in 2024.
Its shares have fallen more than 45% since the beginning of this year.
Strategy currently owns 847,363 bitcoins, valued at roughly $50.4 billion based on bitcoin’s latest closing price.
Market analysts say the company’s declining valuation reflects broader weakness across the cryptocurrency sector.
Nic Puckrin, founder of Coin Bureau, said the falling mNAV ratio signals worsening investor sentiment toward bitcoin and digital assets.
He added that Strategy had remained one of the few companies that investors continued to trust during the crypto downturn, but that confidence is now fading.
Bitcoin itself has remained under heavy pressure, trading near its lowest level in around 20 months after losing roughly half its value from the record high reached in October last year.
The broader cryptocurrency market has struggled throughout 2026 as investors shift attention to other opportunities, while continued outflows from bitcoin exchange-traded funds have added further pressure on prices.
The latest decline in Strategy’s valuation highlights how closely the company’s fortunes remain tied to bitcoin, with both continuing to face growing uncertainty in a difficult market environment.
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