Strategy (MSTR-US), led by outspoken Bitcoin advocate Michael Saylor, doubled down on its digital asset treasury model last week, even as crypto markets reeled. The company disclosed in a filing with the U.S. Securities and Exchange Commission (SEC) that it purchased $835.6 million worth of Bitcoin in the week ending November 16, at an average price of $102,171 per coin.
This marks Strategy’s largest Bitcoin purchase since July and brings its total holdings to 649,870 BTC, valued at roughly $61.7 billion. To date, the company has spent $48.37 billion on its reserves, with an average cost basis of $74,433 per Bitcoin.
Funded by Preferred Stock Offering
Strategy financed most of the acquisition through a euro-denominated preferred stock offering, issuing 10% of its Series A perpetual dividend preferred shares. The deal raised $703.9 million in net proceeds, more than double its initial €350 million target.
Bitcoin Crash and mNAV Concerns
Ironically, the purchase coincided with a sharp Bitcoin price drop to $90,000, down more than 30% from October highs. The decline has put pressure on Strategy’s key valuation metric, mNAV (market capitalization relative to BTC holdings).
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Investors typically view an mNAV of 2 or higher as a sign of stability.
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Strategy’s mNAV has plunged from 2.5 to 1.2, and most recently to 0.937.
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As of November 18, Strategy’s market cap stood at $56–56.7 billion, while its Bitcoin holdings were worth $59.9–61.7 billion.
Other crypto treasury firms have also seen their mNAVs fall below 1, including Metaplanet (0.912) and Bitmine (0.83).
Business Model Debate
The plunge has reignited debate over Strategy’s model. Peter Schiff, a longtime crypto critic, labeled the approach "fraudulent," warning that falling Bitcoin prices could leave the firm unable to pay dividends or service debt, leading to a "death spiral."
By contrast, Jeff Dorman, CIO at Arca, dismissed liquidation fears as "stupid and inaccurate." He noted that Strategy has no obligation to sell its Bitcoin, pointing to positive cash flow from its core business analytics software and relatively low interest expenses.
Saylor himself sought to calm nerves, saying, "We’ve been buying Bitcoin every day this week."
Institutional Demand Shifts
Dorman added that institutional demand is increasingly driven by spot Bitcoin ETFs, not corporate treasury purchases. That shift could limit Strategy’s influence on market sentiment compared to earlier years.
Since first announcing its Bitcoin strategy in August 2020, Strategy’s stock price has surged more than 1,500%. But with the mNAV premium fading, volatility is testing the sustainability of its model.
The Bottom Line
Strategy’s bold November purchase underscores Saylor’s conviction, but the company now faces heightened scrutiny as its mNAV slips below 1. With Bitcoin prices volatile and critics warning of structural risks, the firm’s digital asset treasury model is entering a critical test phase.