Strategy's market-to-net-asset-value premium has fallen below 1, signaling investors worldwide are pulling back from its leveraged Bitcoin-accumulation model. The US firm is now restructuring its capital framework in response.
Strategy raised its STRC preferred dividend to 12% to retain capital and hold investors as the mNAV slide continued. It also authorized a $2 billion share buyback and launched a monetization program, moving beyond a strategy built solely on accumulating Bitcoin.
Chairman Michael Saylor sold a small amount of Bitcoin as part of the shift — notable given his years-long public refusal to sell. Bitcoin ETFs recorded $4 billion in outflows over the same month, a signal that institutional caution extends well beyond one company.
Regulators outside the US are moving in parallel. The Bank for International Settlements, the Basel-based institution that coordinates central banks globally, cast doubt on stablecoins' status as money in its annual report, arguing they function more like exchange-traded fund shares than a payment instrument.1 The BIS said stablecoins "trade off par" and show "redemption frictions... which we've literally never seen," adding 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 — a concern echoed by central banks in Latin America, Africa and parts of Asia. "You can't enforce border rules on a self-custodied token," the institution said.1
The two developments are linked. 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 worldwide. For Strategy, the overhaul marks a departure from its identity as a pure Bitcoin-accumulation vehicle toward one managing shareholder returns directly through dividends and buybacks — a shift international investors will watch as a bellwether for corporate crypto-treasury strategies globally.
