24/7 Wall Street
19 May 2026, 11:51 UTC · 2d ago
Source · https://247wallst.com/investing/2026/05/19/why-is-mstr-stock-down-58-yoy-despite-strategys-relentless-bitcoin-buying/
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MicroStrategy's market capitalization of $58.6 billion is currently $6 billion lower than the $64.83 billion value of the Bitcoin it holds. — Trading at a discount to Net Asset Value (NAV) suggests a severe loss of investor confidence in the company's premium and overall business model.
-0.80The company's mNAV (premium to Bitcoin holdings) has collapsed from a peak of 3.89x in November 2024 to 1.24x. — This compression destroys the 'flywheel' effect that allowed the company to issue shares at a premium to acquire more Bitcoin per share.
-0.70MicroStrategy has shifted from a 'never sell' stance to stating it may sell Bitcoin to fund preferred-stock dividends. — This introduces the risk of selling pressure on Bitcoin and undermines the core bullish thesis of the company.
-0.60The company funded a recent $2.01 billion Bitcoin purchase primarily through preferred shares paying 11.50% dividends rather than common stock. — This indicates that common stock is currently too undervalued to be used effectively for accretive Bitcoin acquisition.
-0.40The launch of Spot Bitcoin ETFs and the emergence of copycat treasury companies have reduced the demand for MSTR as a proxy for Bitcoin exposure. — Increased competition and cheaper alternatives erode the unique market position and premium associated with MSTR.
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The stock has fallen 58% over the past year and is currently trading at a significant discount to its Bitcoin holdings.
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