Strategy Inc Shares: A Deep Value Proposition Emerges

As 2025 draws to a close, Strategy Inc finds its equity valuation languishing near a 52-week low, presenting a stark picture for shareholders. However, this severe compression in price may, according to Executive Chairman Michael Saylor, be setting the stage for a potential inflection point. The stock now trades close to the fundamental value of its substantial Bitcoin holdings alone, even as company leadership executes a notable strategic pivot behind the scenes.

A Strategic Pivot to Liquidity

Amid the declining share price, the company’s management has shifted its tactical approach. In a move that surprised some observers last week, Strategy Inc halted its routine Bitcoin acquisitions. The focus turned decisively to bolstering its balance sheet. Through a series of equity sales, the firm raised approximately $748 million, swelling its total cash reserves to around $2.2 billion.

CEO Phong Le stated this liquidity buffer is intended to shield the company from near-term market volatility and to secure dividend payments for preferred shares for years to come. Despite this shift, with 671,268 Bitcoins on its balance sheet—valued at roughly $60.4 billion—the firm remains a dominant force in the cryptocurrency market.

Valuation Signals a Potential Floor

Michael Saylor highlighted a critical metric in a recent communication titled “Back to Orange.” He pointed out that the share price has approached the level of “1x mNAV,” meaning the company’s market capitalization nearly mirrors the value of its Bitcoin assets, leaving no premium for its ongoing business operations.

This assessment is echoed by market analysts. Whereas the stock traded at a significant premium to its net asset value earlier in the year, that cushion has now evaporated. The calculated floor price, based solely on the Bitcoin holdings, stands near $148.40. With shares closing at $158.81 on Friday, the equity trades perilously close to this theoretical support level.

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

The Looming Risk of Index Exclusion

Despite the attractive valuation, a significant cloud hangs over the stock. Index provider MSCI is currently reviewing whether to exclude companies with extremely high concentrations of digital assets from its global indices. A final decision is anticipated on January 15, 2026.

Analysts at JPMorgan warn that an exclusion could trigger substantial outflows from passive funds tracking these indices, potentially totaling between $2.8 billion and $8.8 billion. A minor positive in this uncertain regulatory climate was the company’s retention of its place in the Nasdaq 100 following the index’s latest rebalancing in December.

Wall Street’s Cautious Stance

The prevailing uncertainty is reflected in shifting analyst sentiment. On December 22, Citigroup significantly reduced its price target for Strategy Inc from $485 to $325, though it maintained a “Buy” rating. The bank cited a challenging short-term environment as the reason, while still acknowledging the long-term potential.

All eyes are now fixed on mid-January 2026. The dual catalysts of the MSCI’s ruling and the release of quarterly figures later that month will likely determine whether the current depressed valuation represents a genuine buying opportunity or if the market is correctly repricing the risks inherent in a leveraged Bitcoin strategy.