Bitcoin Updates: MicroStrategy’s Bold Bitcoin Bet: mNAV Drops Under 1, Raising Concerns Over Possible Liquidation

Bitcoin’s recent price swings have once again put the spotlight on MicroStrategy (MSTR) CEO Michael Saylor’s bold

approach, as speculation mounts among investors about possible sales following a $5.7 billion transfer to new wallets. Saylor, however, has denied these claims, emphasizing that the company is still focused on acquiring more Bitcoin despite the ongoing selloff. This development coincides with MicroStrategy’s market value-to-Bitcoin holdings ratio (mNAV) dropping below 1 for the first time, sparking debate about the viability of its leveraged strategy.

The movement of 58,915 BTC—worth about $5.77 billion—to a new custodian immediately fueled rumors online that MicroStrategy was preparing to offload assets. However, analysts were quick to clarify that this likely represented a standard custody adjustment rather than a sale. “This is simply a wallet adjustment, not a distribution,” one analyst posted,

. Saylor supported this perspective by posting a “HODL” message on X, featuring an image of a life raft next to a sinking ship .

The drop in mNAV has heightened investor unease. With the ratio now at 0.993, MicroStrategy’s market capitalization has fallen below the value of its Bitcoin assets, indicating the company is trading at a discount to its holdings. This shift has led to concerns about a potential “death spiral,” where declining Bitcoin prices might force the company to sell assets to cover its debts. that since November 2024, MicroStrategy’s equity premium has shrunk by $79.2 billion, and its leveraged buying has not resulted in a proportional increase in Bitcoin ownership.

Despite these challenges, Saylor remains optimistic. In an interview with CNBC, he reaffirmed that MicroStrategy is “purchasing significant amounts” of Bitcoin at current price levels, though he admitted it’s difficult to predict year-end outcomes given the recent turbulence. He also dismissed worries about forced asset sales, stating the company remains secure as long as

stays above $183.19 by 2027, .

The landscape for corporate Bitcoin strategies is also shifting. Rivals such as Bitcoin Standard Treasury (BSTR), supported by cryptography pioneer Adam Back, are ramping up their Bitcoin reserves.

through a SPAC merger, entering the market with 30,000 and $1.5 billion in available capital. At the same time, Hong Kong’s Reitar Logtech has revealed a $1.5 billion Bitcoin purchase to broaden its financial strategy . These developments underscore the rising institutional appetite for crypto, even as market volatility tests risk tolerance.

Some critics caution that MicroStrategy’s leveraged approach remains exposed. With its debt now surpassing the value of its Bitcoin, a prolonged slump could force the company to sell some assets to meet its obligations.

, “There’s a risk of forced liquidation if Bitcoin underperforms in 2028.” Still, supporters believe the company’s long-term strategy—viewing Bitcoin as both an inflation hedge and a store of value—remains unchanged.

For now, Saylor’s “HODL” stance continues to shape the narrative. As the market contends with economic headwinds and regulatory questions, MicroStrategy’s Bitcoin investments remain a symbol of both the opportunities and risks in corporate crypto adoption.