Bitcoin News Today: MicroStrategy's Bitcoin Strategy Challenges Market Trust as NAV Falls Under 1

For the first time, MicroStrategy's (MSTR) net asset value (NAV) has dropped below 1, fueling discussions about the company's

(BTC) approach following a $5.7 billion transfer from its wallet. The NAV, which measures the firm's market capitalization against its Bitcoin assets after subtracting liabilities, now below the value of its crypto reserves. This shift has sparked worries about debt exposure, liquidity constraints, and whether MicroStrategy’s bold Bitcoin buying strategy can last .

Market concerns escalated after the company shifted 58,915 BTC—worth about $5.77 billion—to new wallets, leading to speculation it might be preparing to offload assets. Yet, blockchain intelligence firm

explained that these movements were simply a transfer from Coinbase Custody to a different custodian, not a sale . "Such transfers are standard procedure and do not indicate any intention to sell," Arkham clarified, adding that similar transactions have taken place in recent weeks .

During an interview with CNBC, MicroStrategy founder Michael Saylor reiterated the company’s dedication to Bitcoin, dismissing rumors of selling and stating, "we're always buying. Bitcoin remains a solid investment"

. He highlighted that the company is still acquiring BTC at current prices, with more updates expected soon .

The drop in NAV mirrors wider market trends. Vetle Lunde of K33 Research pointed out that MicroStrategy’s equity premium has shrunk by $79.2 billion since November 2024, even after raising $31.1 billion through stock sales

. Lunde observed that the anticipated Bitcoin buying from these stock issuances hasn’t materialized, in using as a stand-in for Bitcoin exposure.

Experts remain split on what this means. Well-known Bitcoin analyst Willy

argued that forced selling is improbable in the next downturn as long as MSTR stays above $183.19 by 2027—a threshold based on a $91,500 BTC price and a 1x NAV ratio . Still, some warn that if Bitcoin underperforms in the 2028 bull run, partial liquidation could become a risk .

MicroStrategy’s mNAV (market cap to Bitcoin holdings) is currently at 0.993, with shares down 2.16% for the day

. The company owns 641,692 BTC, valued at $65.047 billion, with an average purchase price of $74,085 per Bitcoin . While an mNAV below 1 often points to undervaluation or skepticism, if the company’s fundamentals are solid.

This situation highlights the fragile interplay between MicroStrategy’s Bitcoin-heavy approach and investor sentiment. As wallet migrations and valuation metrics remain in focus, observers are watching closely to see if the NAV stabilizes or comes under more strain

.