Tech stocks linked to Bitcoin take a battering as crypto traders brace for Strategy to breach danger threshold

Market Overview - Tech stocks related to Bitcoin have shown a slight recovery in overnight trading, but overall losses from the previous day remain significant. Bitcoin has decreased by 21% over the past month, stabilizing around $87K per coin with a 0.72% increase today [1] - Coinbase and Robinhood experienced declines of 4.76% and 4.09% respectively yesterday, but both saw minor recoveries in premarket trading [1] Company Analysis: Strategy - Michael Saylor's Strategy, a prominent Bitcoin treasury company, has a market capitalization of $50.6 billion, while its 650,000 Bitcoins are valued at $56.7 billion. The company's theoretical enterprise value stands at $65.2 billion, resulting in a "mNAV" ratio of 1.15, indicating its enterprise value exceeds its Bitcoin holdings by 15% [2][3] - A critical threshold for Strategy is an mNAV below one, which would undermine the rationale for holding the stock and could lead to a significant sell-off [4] Strategic Decisions and Risks - CEO Phong Le indicated a willingness to sell Bitcoin to fulfill dividend obligations on debt and preferred shares if the mNAV drops below one. This statement marks a shift from Saylor's previous stance of never selling Bitcoin [5][6] - Strategy currently holds over 3% of all Bitcoin, and any forced sales could trigger a broader market impact. Traders who engaged in leveraged positions against Strategy have faced substantial losses, with certain exchange-traded funds losing over 80% of their value, totaling a $1.5 billion loss in the past month [6]