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Strategy (MSTR) common stock is getting crushed to start December. Shares registered intraday losses over 12% as holders grapple with the negative implications from numerous different stock-specific headwinds.
What's the Scoop?
- Strategy Selling: During a recent interview on the What
Bitcoin Did podcast, Strategy CEO Phong Le stated that BTC sales from the treasury could be a possibility. "If the stock trades below the value of our Bitcoin," Le explained, "and we can’t raise any other capital to pay the preferred dividends, then mathematically we would have to sell some Bitcoin. It would be the last resort." - Cash Reserve: To combat fears that Strategy may be forced to sell BTC, the company announced on Monday that it had established a $1.4B dollar reserve, which should be sufficient to cover ~12 months of interest expense.
- Deepening Discount: Strategy's market capitalization is now well below the value of its BTC holdings. At the time of writing, MSTR stock was trading at a multiple against net asset value (mNAV) of 0.88x, closing the door to raise new funds from ATM share offerings.
- Bitcoin's Slide: Although BTC had consistently rallied throughout the past week, the cryptocurrency started tanking late last night as Asian markets opened, falling as much as 10% into Monday.
- MSCI Exclusion: Analysts for JPMorgan flagged MSTR as a likely candidate for delisting from Morgan Stanley Capital International (MSCI) indexes on November 21, citing an October 10 MSCI request for comment asking clients whether DAT companies should remain in index products.
$MSTR announces the formation of a $1.44 billion USD Reserve and an increase in its BTC Reserve to 650,000 $BTC. pic.twitter.com/e1tAhDUo9G
— Michael Saylor (@saylor) December 1, 2025
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