Strategy holds 847,363 Bitcoin amid valuation pressure

• Strategy remains the largest public corporate Bitcoin holder with 847,363 BTC, according to BitcoinTreasuries.
• Investors are increasingly focusing on valuation metrics such as modified net asset value (mNAV) rather than Bitcoin holdings alone.
• The company's ability to raise capital for additional Bitcoin purchases may depend on whether its equity premium remains above the value of its holdings.

Strategy remains the largest public corporate holder of Bitcoin (CRYPTO:BTC) with 847,363 BTC, but investors are increasingly focused on valuation metrics that could affect its ability to expand its treasury.

The company continues to lead all public corporate Bitcoin holders, although market attention has shifted from the size of its holdings to whether its shares continue trading at a premium to the value of its Bitcoin.

"When treasury companies trade at a premium to their Bitcoin, they can raise capital and accumulate, and when that premium compresses, the model becomes more complicated," the report stated.

The report said modified net asset value, or mNAV, has become a key measure because it reflects how the market values Strategy relative to its Bitcoin holdings and capital structure, while lower premiums may increase scrutiny of funding costs, preferred shares and potential buybacks.

The report said the broader corporate Bitcoin treasury model may depend on whether Strategy maintains its valuation premium, while smaller companies could face greater challenges if investor sentiment weakens.

During earlier stages of the market cycle, companies that purchased Bitcoin often benefited from higher share prices, allowing them to raise additional capital and increase their Bitcoin holdings.

The report concluded that investors are now placing greater emphasis on company scale, financing flexibility, liquidity and shareholder confidence, alongside the size of corporate Bitcoin reserves.

At the time of reporting, Bitcoin price was $63,258.90.