By Mackenzie Tatananni

Shares of Strategy, the world's largest corporate holder of Bitcoin, have been following the broader decline in cryptocurrencies. Investor enthusiasm for the company's Bitcoin treasury strategy also seems to be fading.

As of the market close Thursday, Strategy's market value was lower than the value of its Bitcoin holdings. The software-company-turned-investment-vehicle for Bitcoin ended the session with a market capitalization of around $59.92 billion.

Shares ended the session down 7.2% at $208.54 and looked set to extend those losses for a fifth consecutive day on Friday as they slid 6.2% to $195.77 in the premarket session.

Despite the recent market tumult, Strategy co-founder and chairman Michael Saylor was his usual optimistic self on Friday. Saylor tweeted a reminder to Bitcoin investors to "HODL," or hold on for dear life.

As of Nov. 10, Strategy held 641,692 Bitcoins acquired for around $47.54 billion in total, according to a securities filing. At last check, Bitcoin was down 2.6% over the past 24 hours to $95,560, according to CoinDesk data. This places the value of Strategy's holdings at just over $61.3 billion.

Strategy was trading at an implied premium of $14.4 billion to its Bitcoin holdings, down from a peak of $80 billion in November 2024 and a recent peak of $70 billion in July 2025.

Jim Chanos, founder of Kynikos Associates, a firm focused on short selling -- or a bet that a stock will fall -- disclosed that he'd closed out his hedged position on Strategy earlier this week. In a post on X, Chanos pointed to Strategy's market multiple of net asset value (mNAV), which he expects to decline to 1.

If mNAV is above 1, that indicates a stock is trading at a premium to the value of its Bitcoin holdings. As of Thursday's close, this metric stood at 1.24 times, according to Strategy's website. But the gap is growing smaller and smaller.

"While we still believe there is more room for mNAV compression, the thesis [betting on the stock's decline] has largely played out," Chanos wrote. "We recommend letting others chase the last leg of the trade as MSTR inevitably marches towards a 1.0x mNAV."

Strategy investors are doubting the company's ability to service its preferred dividends and debt interest costs, driving shares lower. But other digital currencies have also been slipping, with Ethereum and Solana down 1.5% and 2.2%, respectively, over the past 24 hours.

The crypto selloff is deepening as Wall Street unloads risk-on assets amid concerns over the stretched valuations of artificial-intelligence stocks. The tech-heavy Nasdaq Composite declined 2.3% on Thursday, marking its worst session in more than a month. Futures tracking the index were 1.5% lower on Friday.

The recent declines have only been compounded by uncertainty over the potential for an interest-rate cut in December. If a cut doesn't occur, that spells doom for cryptos, which become less appealing relative to interest-bearing investments like bonds and savings accounts when borrowing costs are higher.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

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November 14, 2025 09:16 ET (14:16 GMT)

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