Strategy’s Plummeting Stock Challenges ‘Hold Your Bitcoin’ Policy
Strategy’s stock faced a significant decline recently, dropping to its lowest point in nearly two years. This downturn coincides with a sharp decrease in the value of Bitcoin, a digital asset that Strategy has been acquiring for close to six years. As a result, the company’s overall cryptocurrency holdings are now underwater.
Impact of Bitcoin’s Decline on Strategy’s Stock
The recent turmoil in the cryptocurrency market has had a profound effect on Strategy’s financial standing. The stock of Strategy, notably known by its symbol MSTR, hit troubling figures as its value fell alongside Bitcoin, represented by the ticker BTCUSD.
Financial Metrics and Concerns
A crucial indicator known as the multiple to net asset value (mNAV) has now fallen below 1. This metric’s decline is concerning, particularly because CEO Phong Le had expressed hopes it would remain stable. A value below 1 raises fears of liquidation, compelling the company to consider selling parts of its Bitcoin assets.
Key Details
- Date of Stock Decline: February 5, 2026
- Current Stock Performance: Near two-year low for Strategy
- Duration of Bitcoin Holdings: Almost six years
- mNAV Status: Below 1, raising liquidation concerns
The strategic decisions of the company are now under scrutiny as both the stock market and cryptocurrency sectors face instability. Investors and analysts will closely monitor how Strategy manages its cryptocurrency investments moving forward.
