Why Strategy Inc. Is Still Trading at a Premium to Its Bitcoin Treasury

If you’re following the crypto world and how it intersects with traditional finance, you’ll want to tune into what’s happening with Strategy Inc. (ticker MSTR). 

Once known as MicroStrategy, this firm has turned its balance sheet into a major Bitcoin play. And while its shares have taken a hit lately, the company is still trading at a premium to the Bitcoin it holds.

Here’s what you need to know in plain terms and why it matters for anyone over 50 who’s interested in money, markets, and new tech.

What’s going on with Strategy?

Strategy holds around 641,692 BTC on its books. 

On paper, at today’s Bitcoin price, this stash is worth tens of billions. At the same time, the company’s market capitalisation (or enterprise value) is hovering in the same ballpark.

What’s interesting: even though the stock has declined sharply this year (down about 20 % year-to-date and 36 % year-over-year), it still trades above what the Bitcoin holdings alone would suggest. In other words, investors are paying extra for the stock beyond just the raw bitcoin value.

That extra value is captured in the metric called mNAV (market Net Asset Value). mNAV = enterprise value ÷ (Bitcoin holdings × price). If mNAV > 1, the firm trades at a premium; if < 1, at a discount.

Right now, Strategy’s mNAV is roughly around 1.23 (or in the low-1s) according to publicly available data.

Why does that premium exist?

For a company primarily holding digital assets, why would investors pay more than the “raw value” of the assets? A few reasons:

• The market views Strategy not just as a passive Bitcoin holder, but as a levered Bitcoin proxy. Because it issues equity and debt to acquire more BTC, it offers “amplified” exposure.
  
  
• There’s optionality: if Bitcoin rallies, the upside for Strategy’s shares might be greater than simply owning Bitcoin directly, because of this leverage effect.
  
  
• Investors may be assigning value to management, brand, institutional credibility, tax advantages, etc., beyond the asset value.
  So the premium reflects expectations of more than just “we have BTC, that’s it.”
  
  
  

Why the recent drop in stock — and what it means

But the premium comes under pressure. When Bitcoin falls, or when risk appetite shrinks, Strategy’s stock can drop more sharply than Bitcoin itself. That’s because when you pay a premium, you’re more exposed to disappointment.

According to the recent report, Strategy’s shares are down around 20 % YTD as Bitcoin slipped and remains volatile, recently trading around the $100,000 mark.

This suggests two things for an investor:

1. The premium is not locked in; changing market sentiment can shrink it rapidly.
   
   
2. If the mNAV were to fall below 1 (i.e., the stock trades at or below the value of the BTC holdings alone), then the “levered upside” narrative becomes less convincing. Some analysts view that as a warning sign.

Why this matters for you

As someone interested in money management, market structures, and new crypto-technology, here are some takeaways:

• Holding a company like Strategy is not the same as holding Bitcoin. The correlation leans higher than 1: the stock can swing more violently. Academic work suggests some firms hold a beta above 1 relative to Bitcoin.
  
  
• When you pay for a premium (mNAV > 1), you should ask: what’s the reason? Is it justified? What could shrink it?
  
  
• If you’re evaluating Bitcoin exposure for your portfolio, you might decide: direct Bitcoin ownership (or via a regulated Bitcoin fund) gives you “pure” exposure; a company like Strategy gives you exposure plus additional corporate risk and structural leverage.
  
  
• As you head into or are already in retirement (or near it), managing risk is key. Buying a premium asset expecting “more” is fine, but you must be comfortable if the premium reverses.
  
  

Bottom line

Strategy remains one of the most visible examples of a corporate Bitcoin treasury strategy. It holds a massive amount of Bitcoin, yet trades at a premium to its assets. That premium reflects investor belief in its strategy and growth path.

But premiums don’t last forever. If you’re evaluating whether this kind of investment fits your portfolio, ask: What am I paying extra for? What could remove that extra value?

In a world where markets are increasingly linked (Bitcoin, tech equities, macro factors), companies like Strategy highlight how digital assets are being woven into traditional financial structures. 

And for those of us keeping an eye on money, markets, and technology — that’s exactly the kind of story worth watching.