TLDR
- Strategy’s enterprise value fell below the value of its Bitcoin holdings.
- MSTR dropped near $82 as Bitcoin traded close to the $60,000 level.
- STRC fell near $71 before recovering while remaining far below par.
- Preferred dividend obligations have climbed to about $1.2 billion yearly.
- Cash reserves reportedly cover about 10 months of preferred payments.
Strategy’s enterprise mNAV fell below 1 on Friday as pressure intensified across its common stock, preferred shares, and Bitcoin holdings. The decline showed that the company’s enterprise value had slipped below the market value of its Bitcoin reserves, creating renewed scrutiny around its capital structure.
MSTR shares closed down 3.5% at about $82.31, after touching a yearly low near $82 during the session. At the same time, Strategy’s enterprise value was estimated at $50.3 billion, compared with Bitcoin holdings valued at roughly $50.6 billion. The company currently holds 847,363 BTC.
Enterprise mNAV Slips Below Bitcoin Holdings Value
Strategy defines enterprise mNAV as enterprise value divided by the market value of its Bitcoin holdings. Enterprise value includes the market value of common shares, debt, preferred stock, and cash adjustments, making it broader than basic mNAV.
A reading below 1 means the market is valuing the full enterprise below the stated value of its Bitcoin holdings. However, this does not mean common shareholders can directly access Bitcoin at a discount, since debt and preferred stockholders rank ahead of common equity.
Bitcoin also added pressure after trading near $60,000 and briefly falling toward $58,000 on Thursday. Strategy’s average Bitcoin purchase price is reportedly near $75,000, leaving the company exposed as the asset trades below its cost basis.
STRC Decline Raises Funding Concerns
Strategy’s Stretch preferred stock, STRC, fell to about $71 before recovering near $74, placing it far below its $100 stated amount. STRC was designed to trade near par, with Strategy able to adjust its monthly dividend rate to support the price.
The annualized dividend has already increased from 9% at launch to 11.5%. At a market price near $74, the effective yield rises above 15%, reflecting investor concern around the security.
Strategy has used STRC and other preferred shares to raise capital for Bitcoin purchases. However, a deeply discounted STRC makes future issuance less efficient, while any further dividend increase would raise the company’s payment obligations.
Cash Reserve Pressure Adds to Market Stress
Yahoo Finance reported that Strategy’s preferred dividend obligations have quadrupled since the start of 2026 to about $1.2 billion annually. The company has also faced questions over whether its cash reserves can sufficiently cover those payments.
According to reported company data, Strategy has enough cash reserves to cover roughly 10 months of preferred stock obligations. CryptoQuant said rebuilding cash reserves to about $2.8 billion, or 24 months of coverage, would be needed for preferred shares to recover.
The simultaneous decline in MSTR, STRC, and Bitcoin has placed pressure on both sides of Strategy’s funding model. A lower common stock valuation reduces enterprise mNAV, while weak STRC pricing challenges one of the company’s key capital channels.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
