NEW YORK, 1 December 2025 — Strategy Inc., the US-listed enterprise software firm turned Bitcoin treasury vehicle, may be forced to sell some of its roughly US$56 billion Bitcoin holdings if its sagging share price and valuation trend persist, according to remarks from its chief executive.
The warning comes as Strategy’s share price has dropped sharply, and the company’s core metric, its market capitalisation relative to its Bitcoin holdings (mNAV), has fallen to about 1.2 times the value of its Bitcoin stash. If the premium continues eroding, the company could face increasing pressure.
What’s at stake
- Strategy’s business model hinges on using its Bitcoin holdings both as balance-sheet assets and as collateral for capital issuance to fund further acquisitions. With the share price under pressure, the margin of safety narrows.
- A decision to sell Bitcoin would mark a significant shift in tone from a company that has consistently positioned itself as a buyer, and may be interpreted by global crypto markets as a bearish signal for Bitcoin overall.
- For Asian investors exposed to crypto-asset trends, this development amplifies the risk: corporate treasuries holding large digital-asset positions may face both share-price and liquidity risk, not just crypto-price risk.
Why this matters for Asian and global markets
- Many Asian institutional funds, wealth-portfolios and fintech/crypto ventures track or benchmark off large public holders like Strategy. A potential sale by one of the largest could ripple across sentiment, price-discovery and corporate investor strategy.
- Asia-Pacific tech and software companies that have drawn inspiration from the “crypto-treasury” model (especially in emerging markets) may face increased scrutiny or reassess viability if Strategy pivots.
- The move underscores that crypto-asset exposures embedded in corporate treasuries are not just about Bitcoin price, but also about equity valuation, funding cost, regulatory risk and capital-markets sentiment, relevant for regional companies and regulators alike.
- For investors allocating to crypto-adjacent equities in Asia, this is a reminder of the multi-layered risks: an adverse move in a treasury-company’s share price can compound crypto risk, as distinct from a standalone crypto trade.
Key risks & what to monitor
- Whether Strategy announces actual sales of Bitcoin or signals a concrete plan for asset liquidation.
- Direction of Strategy’s stock premium, mNAV metric, and investor confidence. If the premium falls below 1x, the company may face heightened refinancing risk.
- Broader crypto market reaction: If a major corporate holder sells, it may trigger cascade effects across correlated crypto equities and tokens in Asia.
- Regulatory and capital-markets implications: how regulators view companies holding large crypto-treasuries, how auditors and investors assess asset disclosures and leverage associated with digital-asset holdings.
- Funding-cost pressure: If Strategy’s cost of capital rises (due to share-price weakness), its ability to continue buying Bitcoin or maintaining its model may be impaired, which may pressure Asian firms doing similar moves.
