Strategy Shares Trade at Unprecedented Discount to Bitcoin Holdings

Strategy Inc, once celebrated as a pioneering force in corporate Bitcoin adoption, is currently navigating its most severe market test. For the first time since early 2024, the company’s shares are trading below their calculated Bitcoin value, despite announcing record-breaking third-quarter profits. This divergence raises critical questions about investor confidence in the firm’s long-term strategy.

Investor Skepticism Overshadows Record Earnings

The Q3 2025 financial results presented what should have been a triumphant narrative: $2.8 billion in net profit and $3.9 billion in operating income—a dramatic reversal from the $432 million loss recorded during the same period last year. The company’s Bitcoin treasury expanded to 640,808 BTC, while annual projections remained optimistic, forecasting $24 billion in net profit and $80 earnings per share, predicated on Bitcoin reaching $150,000 by year-end.

Market reality tells a different story. Despite Bitcoin’s relative stability, Strategy shares have declined approximately 40% over six months. The crucial metric—the Market-to-Net-Asset-Value ratio—has fallen below 1.0, indicating investors now value the stock at a discount rather than the premium it historically commanded. This represents a significant shift from one year ago when the premium stood at 2.7.

Aggressive Acquisition Strategy Faces Mounting Criticism

The company continues its Bitcoin accumulation unabated, demonstrating no deviation from its established path. In mid-November, Strategy deployed another $50 million to purchase 487 Bitcoin at an average price of $102,557. Throughout 2025, the firm has raised $20 billion through capital markets, primarily via stock offerings and convertible bonds.

Executive Chairman Michael Saylor publicly maintains that Bitcoin will ultimately “outperform” both gold and the S&P 500 over the long term. However, this persistent acquisition comes with consequences—each purchase temporarily diminishes per-share value through dilution. Investors increasingly question whether Strategy provides sufficient added value compared to direct Bitcoin ownership.

Should investors sell immediately? Or is it worth buying Strategy?

Compounding these concerns, Executive Vice President Shao Wei-Ming sold shares worth $2.58 million during this critical period. Although executed under a pre-arranged trading plan, the timing sends an unfortunate signal to the market.

The Bitcoin Treasury Model Under Pressure

Strategy’s transformation from software provider to the world’s first “Bitcoin Treasury Company” faces its most significant challenge. The viability of this business model depends entirely on market acceptance of its underlying financial logic.

In a move signaling growing pressure to retain investor interest, the company recently increased the dividend on its STRC preferred shares to 10.5%. The coming weeks will prove decisive for Strategy’s valuation. If Bitcoin maintains its recent recovery, confidence could return. However, should the cryptocurrency fall below $95,000 again, the company risks entering a dangerous downward spiral of declining valuation, increasing skepticism, and further dilution.

What was once considered a premium Bitcoin investment vehicle now trades at a discount, leaving market participants to reconsider the fundamental proposition Strategy offers.