Michael Saylor’s company, Strategy (MSTR), is experiencing significant challenges in the stock market as February begins. The stock is currently down 7% and is poised for its eighth consecutive monthly decline. As of now, shares are trading near $141, representing a steep decline of approximately 75% from a record high of around $540 observed in November 2024.
Trends and Performance Statistics
The downtrend in MSTR shares has been ongoing since July, contributing to seven months of negative performance. By the end of 2025, MSTR’s stock had declined by 48%, making it the second-worst annual performance in the company’s history. In 2022, MSTR shares fell by 75%, marking the lowest point for the company.
Bitcoin’s Market Influence
In contrast, the price of bitcoin has dropped about 40% from its all-time high reached in October. This shift creates a performance gap of around 35% between MSTR and bitcoin. In January, this gap briefly expanded to 45%, a divergence last seen in 2021.
Market Valuation and Future Strategies
MSTR’s multiple to net asset value (mNAV), which is calculated by dividing the company’s enterprise value by its bitcoin reserves, currently stands at 1.09. This metric enables Strategy to issue common stock through at-the-market offerings to fund additional bitcoin purchases.
- If MSTR shares decline further, the scale of future bitcoin investments may be reduced.
- A fall in mNAV below 1 could compel the company to halt bitcoin purchases until market conditions improve.
During the previous bear market in 2022, Strategy raised only $275 million, which was allocated to acquiring approximately 10,000 BTC. The company’s capability to navigate these challenges will be critical for its future strategy and investment decisions.
