Strategy Inc. (MSTR) formerly known as MicroStrategy saw its stock tumble to its lowest level since April, signaling growing pressure on the digital asset treasury (DAT) sector as valuations continue to unravel.
The company’s shares have plunged 45% from this year’s peak, now trading around $250, and are down over 53% from their all-time high. Its market capitalization has fallen to $72 billion, a steep decline from the $128 billion it once commanded.
Digital asset treasury faces sharp valuation reset
The slump in Strategy’s stock comes amid a broader sell-off in digital asset treasury firms, whose valuations had soared alongside Bitcoin’s rise.
Recent data shows Strategy’s market net asset value (mNAV) multiple has collapsed from 3.5 in November 2024 to 1.08, indicating the stock now trades close to the value of its Bitcoin holdings.
Similarly, the enterprise value-based mNAV which includes debt and excludes cash has dropped from over 4 last year to 1.31, reflecting a major compression in investor sentiment.
Analysts warn that both market cap and enterprise value-based NAV multiples could soon fall below 1, aligning with other top Bitcoin treasury companies such as KindlyMD, Metaplanet, MicroCloud Hologram, and Semler Scientific.
The MSTR slide mirrors a broader correction across the DAT sector, one analyst noted, suggesting that the era of inflated Bitcoin treasury valuations is ending.
Wider sector hit as confidence evaporates
The downturn isn’t limited to Strategy. Other treasury firms like Alt Sigma, Tron Inc., and The Smarter Web Company have also suffered double-digit losses, while Tom Lee’s BitMine has crashed over 70% from its highs.
In Japan, Metaplanet now trades at a market cap of $3 billion, despite holding $3.2 billion worth of Bitcoin, illustrating how investor confidence in DAT firms has sharply weakened.
Technical indicators signal further downside
From a technical standpoint, Strategy’s stock outlook remains bearish.
A death cross pattern formed on October 22, when the 50-day moving average crossed below the 200-day one a traditional warning sign of extended downtrends.
The Average Directional Index (ADX) has surged to 28, its highest since May, confirming the strength of the current decline. Both the Relative Strength Index (RSI) and Stochastic Oscillator continue to drop, while the Supertrend indicator remains above price levels suggesting the next major support could emerge near the $200 psychological mark.