Strategy stock sinks 8% today: will the Saylor-led company sell its Bitcoin?

Strategy Inc. said Monday it has established a $1.4 billion reserve to fund future dividend and interest payments, a move aimed at easing investor fears that the world’s largest corporate Bitcoin holder may have to sell part of its massive crypto stash as prices continue to fall.

The reserve — funded by proceeds from the sale of new Class A common stock — would cover at least 21 months of dividend payments, the Tysons Corner, Virginia-based company said.

Over time, Strategy plans to keep enough liquidity in place to cover up to two years of payments.

Despite the announcement, shares fell as much as 7.9% on Monday, the steepest drop in more than a year.

Investors appeared unconvinced the reserve would fully eliminate the risk of forced Bitcoin sales, especially given Strategy’s long-standing reliance on issuing new equity to finance its Bitcoin purchases — a method that has diluted shareholders and pushed the firm toward more expensive capital.

Why is Strategy under pressure?

At the heart of investor anxiety is Strategy’s modified net asset value, or mNAV — a key valuation metric comparing the company’s enterprise value with the value of its Bitcoin holdings.

The figure stood at roughly 1.14 on Monday, edging closer to the point at which it could turn negative.

Chief Executive Officer Phong Le suggested last week that if mNAV fell below 1x — meaning the company’s enterprise value drops below the value of its Bitcoin — Strategy would consider selling some of its crypto.

“We can sell Bitcoin and we would sell Bitcoin if we needed to fund our dividend payments below 1x mNAV,” Le said on a podcast Friday, stressing it would be a last resort.

Bitcoin itself dropped as much as 7% on Monday, falling below $85,000.

The downturn added pressure to Strategy’s model, which has become increasingly exposed to cryptocurrency volatility.

Formerly known as MicroStrategy, the company has shifted almost entirely from software development to Bitcoin accumulation.

Its highly leveraged treasury strategy — raising capital, buying bitcoin, and benefiting from rising prices — is now under severe strain as digital asset markets weaken and investor risk appetite fades.

Strategy adds more Bitcoin despite volatility

Even as concerns mount, Strategy continued acquiring Bitcoin.

According to an SEC filing, the company bought an additional 130 BTC between Nov. 17 and Nov. 30 for roughly $11.7 million at an average price of $89,960 per coin.

The company now holds 650,000 BTC — worth around $56 billion — purchased at an average price of ₹74,436 per Bitcoin for a total cost of roughly ₹48.4 billion, including fees, according to co-founder and executive chairman Michael Saylor.

The holdings represent more than 3% of Bitcoin’s fixed 21 million maximum supply and imply about $7.6 billion in unrealised gains even after the recent price slide.

Strategy remains the largest Bitcoin treasury among public companies.

According to Bitcoin Treasuries data, 195 public firms now hold Bitcoin on their balance sheets.

The remainder of the top 10 includes Marathon Digital (53,250 BTC), Tether-backed Twenty One (43,514 BTC), Metaplanet (30,823 BTC), Adam Back’s entity (30,021 BTC), Bitcoin Standard Treasury Company (24,300 BTC), Bullish (19,324 BTC), Riot Platforms (14,548 BTC), Coinbase (13,011 BTC), and Trump Media (11,542 BTC).