Strategy (NASDAQ:MSTR) is down to $90—a 20% drop since Monday—prompting a debate over the sustainability of the company’s BTC-backed financing strategy.
Bitcoin Accumulation Engine Faces Test
In an X post on June 24, expert author Shanaka Anslem Perera cited Strategy’s August 2025 filing pointing to a scenario where shares traded below 1x NAV, then it would consider issuing credit to repurchase its own stock.
Issuing stock above NAV can increase Bitcoin (CRYPTO: BTC) exposure per share for existing shareholders. However, issuing equity below NAV has the opposite effect, diluting Bitcoin ownership on a per-share basis.
As a result, the mechanism that helped Strategy build the world’s largest corporate Bitcoin treasury becomes less attractive when shares trade below the value of the underlying Bitcoin holdings.
