Strategy's market-to-net-asset-value (mNAV) premium has fallen below 1, the clearest signal yet that investors are pulling back from its leveraged Bitcoin-accumulation model. The company is now restructuring its capital framework in response.
Strategy raised its STRC preferred dividend to 12% to retain capital and hold investors amid the mNAV slide. It also authorized a $2 billion share buyback and launched a monetization program, moving beyond a strategy built solely on accumulating Bitcoin.
Michael Saylor, the company's chairman, sold a small amount of Bitcoin as part of the shift. Bitcoin ETFs recorded $4 billion in outflows over the same month, pointing to a broader cooling in institutional crypto demand beyond Strategy alone.
Regulators are moving in parallel. The Bank for International Settlements' annual report cast doubt on stablecoins' status as money, arguing they function more like exchange-traded fund shares than a means of payment.1 The BIS said stablecoins "trade off par" and show "redemption frictions... which we've literally never seen," and that they "don't settle on central bank balance sheets and can't guarantee par across issuers."1
The BIS also warned that dollar-denominated stablecoins are accelerating dollarization in fragile economies, weakening local currencies and undermining capital controls. "You can't enforce border rules on a self-custodied token," the institution said.1
The timing links two threads in crypto-adjacent finance: corporate Bitcoin treasuries built on leverage and premium valuation are showing their first real strain, while global regulators signal tighter scrutiny of the stablecoin infrastructure underpinning much of the crypto market. For Strategy, the capital framework overhaul marks a departure from its identity as a pure Bitcoin-accumulation vehicle toward one that also manages shareholder returns directly through dividends and buybacks.
