Bitcoin’s recent drop to its lowest price since May 2025 has impacted Strategy’s MSTR stock, with prices slipping to $197 pre-market for the first time since October 2024. Strategy’s $5.77 billion Bitcoin transfer sparked panic, but analysts clarified it was likely a custody move, not distribution. MSTR’s Net Asset Value multiple dropped below 1, reflecting investor concerns.

Market anxiety surged after Strategy moved 58,915 BTC ($5.77 billion) into new wallets, sparking speculation of a potential sell-off. Analysts noted it was likely a custody restructuring, not distribution. Despite the clarification, market sentiment remained fragile as traders assessed potential underlying issues.

Strategy’s Net Asset Value (NAV) multiple fell below 1 for the first time, valuing MSTR shares at less than the Bitcoin it holds. This indicates investor concerns about debt risk, liquidity, and the sustainability of Strategy’s Bitcoin-acquisition model. Analysts also highlighted a drop in Strategy’s equity premium and implied Bitcoin demand not translating into real purchases.

Bitcoin proponent Willy Woo downplayed concerns about liquidation, stating Strategy is unlikely to be forced to sell Bitcoin in the next bear market as long as MSTR trades above $183.19 by 2027. Woo warned of potential partial liquidation if Bitcoin underperforms during the anticipated 2028 bull cycle.

Read more at Cointelegraph: Strategy NAV Falls Below 1 as BTC Continues Bearish Rally