Strategy MSTR, the largest corporate Bitcoin holder, saw shares drop 49.7% in 3 months, underperforming the Finance sector by 1.4% and Financial- Miscellaneous Services industry by 12.9%. This is due to Bitcoin price volatility, mNAV compression, and underperformance compared to competitors like CLSK, RIOT, and MARA.

MSTR holds about 671,268 BTC, making it the world’s largest corporate Bitcoin holder with $71 billion in digital assets. The company raised $19.8 billion in 2025, maintaining a 30% BTC yield target for 2025. They also launched innovative preferred securities to strengthen capital flexibility and funding stability.

MSTR shares trade at a discount with a P/B value of 0.91X, below the industry average of 3.18X, indicating undervaluation. This presents an attractive entry point for value-oriented investors.

While MSTR’s long-term position is strong, short-term challenges include mNAV compression, valuation volatility, and higher obligations. 2025 earnings estimate is $78.04/share, with 2026 estimate at $51.60/share, showing a 33.88% YoY decrease.

MSTR stock is currently below the 50-day and 200-day moving averages, signaling a bearish trend. To maintain a hold position, investors should consider the company’s strong fundamentals, despite short-term uncertainties. The Zacks Rank for MSTR is currently #3 (Hold).

Read more at Nasdaq: Reasons to Hold MSTR Stock Despite a 50% Decline in 3 Months