TLDR
- Strategy Inc (NASDAQ:MSTR) dropped 5.90% to $211.35 on Thursday as Bitcoin fell 3% to $98,588, pulling crypto-related stocks lower.
- The company’s market capitalization temporarily fell below the $66.6 billion value of its 641,692 Bitcoin holdings, creating a rare negative premium situation.
- Executive VP Shao Wei-Ming sold 2,600 shares for $581,535 as part of his ongoing retirement planning, adding to over $24 million in sales since October.
- Bitcoin’s four-year halving cycle appears to be weakening, with markets 1,080 days past the last low without expected euphoria or altcoin momentum.
- The stock’s historical premium over Bitcoin value has evaporated as investors increasingly favor spot Bitcoin ETFs over leveraged corporate exposure.
Strategy Inc stock fell Thursday as Bitcoin weakness spread across crypto-linked equities. Shares closed down 5.90% at $211.35, hovering near the 52-week low of $219.68.
MicroStrategy Incorporated, MSTR
Bitcoin declined 3% to $98,588. The selloff comes as market participants question whether Bitcoin’s traditional four-year cycle is still intact.
Analyst Scott Melker pointed out that Bitcoin’s prior peaks happened 1,060 to 1,070 days after major lows. The current market sits about 1,080 days past its last bottom. Yet the expected euphoria phase hasn’t materialized.
Altcoin activity remains muted. Investor sentiment stays negative. Many participants already exited positions early.
Melker theorizes that traders may have weakened the cycle by anticipating moves too soon. Bitcoin might now enter a longer, liquidity-driven period extending into 2026.
Market Values Company Below Its Bitcoin Reserves
Strategy’s market cap briefly dropped below its Bitcoin holdings value on November 13. This unusual situation reflects changing investor attitudes toward corporate crypto structures.
The company owns roughly 641,692 Bitcoin. With prices ranging between $98,000 and $105,000, those holdings total approximately $66.6 billion.
Strategy’s market capitalization fell to about $65.3 billion during trading. Investors effectively valued the company’s equity below its digital asset portfolio.
This represents a dramatic reversal. Strategy stock historically commanded a premium over its Bitcoin value. Investors paid extra for leverage and potential upside.
That premium has now vanished. The shift shows growing preference for direct Bitcoin access through exchange-traded funds rather than corporate vehicles.
Strategy funded its Bitcoin acquisitions through convertible debt and share issuances. This strategy boosted exposure during bull markets. It also created dilution concerns for existing shareholders.
The company’s balance sheet includes billions in convertible bonds and preferred shares. Leverage amplifies both potential gains and losses.
Market observers note Strategy once traded at 3x its Bitcoin value. Now it trades roughly at parity. Retail buyers previously used Strategy as a Bitcoin proxy before ETF approval.
Spot Bitcoin ETFs now offer simpler, lower-cost access. Capital is flowing toward these vehicles instead of leveraged corporate options.
Insider Sales Continue Under Pre-Set Plan
EVP Shao Wei-Ming sold 2,600 shares for $581,535 at $223.67 on November 14. The sale followed his predetermined Rule 10b5-1 trading plan.
Earlier that week, he sold 10,668 shares on November 10-11. Those transactions brought in roughly $2.58 million at prices from $234.74 to $249.55.
Shao’s 2025 sales total tens of millions. He sold 52,500 shares in July for over $21 million. October sales of 30,000 shares generated about $10.7 million.
These transactions align with his retirement planning. The sales were scheduled well before his retirement announcement.
Shao retains 12,726 Class A shares after these transactions, plus preferred stock holdings.
BitMEX Research noted that Strategy’s enterprise value, including debt, stands around $76 billion. That’s approximately 20% above its Bitcoin holdings value.
The company reported third-quarter results in October. Bitcoin holdings reached 640,808 as of October 26. Strategy generated 26.0% Bitcoin Yield and $12.9 billion in gains year-to-date.
Analyst opinions remain divided. Monness, Crespi and Hardt upgraded from Sell to Neutral on November 10. Canaccord Genuity and HC Wainwright kept Buy ratings with price targets at $474 and $475.
