For years, Strategy Inc. traded at a hefty premium to its Bitcoin stash. Investors were willing to pay more than the underlying crypto was worth just for the privilege of exposure through a publicly traded stock. That era appears to be over.

Bloomberg reports that Strategy’s enterprise multiple to net asset value, known as mNAV, has fallen below 1x. In English: the company’s total enterprise value is now less than the market value of the Bitcoin sitting on its balance sheet. As of late June 2026, Strategy’s enterprise value sat at roughly $50.4 billion, while its 847,363 Bitcoin were worth approximately $51.1 billion.

From premium darling to discount bin

The stock, which once traded near $540 in November 2024, has cratered to around $82. That’s an 85% decline from its peak.

Bitcoin’s own trajectory tells much of the story. After surging past $126,000 during the 2025 rally, the largest cryptocurrency has retreated to approximately $60,000. Strategy, which has staked its entire corporate identity on accumulating Bitcoin, absorbed every bit of that decline and then some.

The company, which rebranded from MicroStrategy in February 2025 to better reflect its Bitcoin-centric mission, essentially operates as a leveraged Bitcoin vehicle. Because investors valued Strategy stock above the Bitcoin it held, the company could issue new shares at inflated prices and use the proceeds to buy more Bitcoin. Each share issuance was accretive, meaning existing shareholders got more Bitcoin exposure per dollar invested.

$10 billion in unrealized losses and a shrinking playbook

With Bitcoin trading near $60,000, Strategy is now sitting on more than $10 billion in unrealized losses based on the average acquisition cost of its holdings.

The vanishing premium has also killed the equity issuance strategy that fueled the company’s buying spree. To adapt, Strategy has reportedly pivoted toward alternative capital strategies. The company’s playbook now includes debt mechanisms and preferred stock instruments, with plans that could involve up to $1.25 billion in either Bitcoin buybacks or sales. A company that built its brand on never selling Bitcoin is now keeping the option on the table.

Strategy’s balance sheet features a mix of convertible notes, preferred stock offerings, and traditional debt, all layered on top of a single underlying asset.

What this means for investors

The mNAV falling below 1x fundamentally changes the investment thesis for Strategy stock. What remains is a stock that gives you slightly less than one dollar of Bitcoin for every dollar you invest, plus corporate debt and preferred stock obligations sitting on top.

Spot Bitcoin ETFs now offer investors direct Bitcoin exposure without the corporate overhead, debt obligations, or management risk that come with owning Strategy stock. When Strategy traded at a premium, it offered something ETFs couldn’t: leveraged upside. At a discount, the value proposition gets murkier.

Investors watching this space should pay close attention to whether Strategy actually executes any Bitcoin sales from that $1.25 billion authorization. The company still holds 847,363 Bitcoin, making it by far the largest corporate holder of the asset.