Shares of Strategy (MSTR 3.74%) -- formerly MicroStrategy -- tumbled 14.4% this week, according to data from S&P Global Market Intelligence. The largest known investor in Bitcoin fell along with the price of the cryptocurrency, which briefly slipped to around $80,000 before recovering to $85,000 as of this writing on November 21st, 2025. Historically, Strategy has traded at a premium to its underlying Bitcoin net asset value (NAV), but that has compressed in 2025.
Shares are now down 43% year-to-date. Here's why Strategy stock was falling yet again this week.
NASDAQ: MSTR
Key Data Points
Falling Bitcoin, new funding sources
Beginning back in 2020, Strategy went on a journey of raising funds to buy Bitcoin on its balance sheet. As the price of Bitcoin has gone up and the company traded at a premium to its Bitcoin NAV, it has been able to efficiently raise more money to buy more Bitcoin. Its shares outstanding have risen by 199% in the last five years in order to fund Bitcoin purchases, and combined with rising cryptocurrency prices, Strategy's stock is up 667% in the last five years alone.
Now, these trends are reversing. The gap between its NAV and the stock's market gap is narrowing, which we can see through the price performance of Bitcoin vs. Strategy stock. Strategy stock is down 43% this year, while Bitcoin is only down 10%. As of this writing, the value of Bitcoin on its balance sheet minus its outstanding debt is $46 billion. Strategy's market cap is barely higher, at $49 billion.
With falling cryptocurrency prices, it is getting harder and harder for Strategy to raise funds through stock offerings. This has led it to new funding sources, such as the recent preferred stock it sold that raised $700 million. Preferred stock will add more cash to the balance sheet but will increase its cost of funding, as it comes with a 10% annual interest payment.
Image source: Getty Images.
Is Strategy stock a buy today?
An investment in Strategy while its stock traded well above the underlying assets on its balance sheet never made much sense. Today, with that gap closed, you might have a better argument for investing in the company, especially after this sharp drawdown.
But at the end of the day, you are buying Strategy stock to get exposure to Bitcoin. Why not make it simpler for yourself and just buy Bitcoin directly on a cryptocurrency exchange? Strategy is a complicated mess of debt, preferred stock, and potential future share dilution. If you are a believer in Bitcoin, just buy Bitcoin and skip buying Strategy, you'll sleep easier at night.
