Saylor's Bitcoin Strategy Under Fire as Enterprise Value Falls Below BTC Holdings

Michael Saylor's Bitcoin strategy has come under fire for its impact on the crypto market. According to Ripple CEO Brad Garlinghouse, this strategy has hurt the market. One key issue is that the company's enterprise value has fallen below the value of its Bitcoin holdings.

The company's shares, listed as MSTR, have dropped near $82, while Bitcoin traded close to the $60,000 level. This has placed pressure on both sides of Strategy's funding model, with a lower common stock valuation reducing enterprise mNAV and weak STRC pricing challenging one of the company's key capital channels.

Strategy defines enterprise mNAV as enterprise value divided by the market value of its Bitcoin holdings. A reading below 1 means the market is valuing the full enterprise below the stated value of its Bitcoin holdings.