SINGAPORE, Feb 5, 2026, 14:39 SGT
- Bitcoin dropped over 3% in Asian hours, slipping to around $70,000 and pulling down crypto-related stocks along with it.
- Strategy’s shares fell roughly 7% early this February, set to mark their eighth consecutive monthly drop.
- Analysts are eyeing ETF outflows alongside falling share premiums, warning these trends might limit crypto-treasury firms’ capacity to keep purchasing tokens.
Bitcoin dipped toward $70,000 on Thursday, dragging down Strategy and other publicly traded “crypto-treasury” stocks that investors use as proxies for direct token holdings.
This shift is significant since Strategy’s model—and an expanding set of imitators—relies on strong stock markets to keep buying crypto. If the coin drops and the equity premium shrinks, the funding cycle snaps shut quickly.
Concurrently, funds are flowing out of U.S. spot bitcoin exchange-traded funds (ETFs) that hold bitcoin outright. This cuts off a reliable source of buying pressure just as prices hover around break-even levels for major holders.
Bitcoin dropped over 3% during the Asian session, hitting $70,052.38—its lowest since November 2024. Ether also dipped, down nearly 2% to $2,086.11, according to Reuters. The slide is tied to concerns that incoming U.S. Federal Reserve chair Kevin Warsh might tighten the Fed’s balance sheet. “The market fears a hawk with him,” said Manuel Villegas Franceschi of Julius Baer. Deutsche Bank analysts noted that U.S. spot bitcoin ETFs faced outflows exceeding $3 billion in January, following about $2 billion in December and $7 billion in November. 1
Strategy (MSTR) has dropped about 7% so far in February, heading for its eighth straight monthly loss. The stock trades near $141, down roughly 75% from its November 2024 peak around $540, CoinDesk reported. Its multiple to net asset value — “mNAV,” calculated by dividing enterprise value by the value of its bitcoin reserves — has fallen to 1.09. That tightens the squeeze on selling shares via at-the-market offerings, a program letting companies slowly sell stock into the market. If mNAV slips below 1, Strategy may have to halt purchases and hold out for a rebound, the report noted. 2
That mNAV figure isn’t just some spreadsheet oddity. It’s the key metric that determines if issuing stock to purchase more bitcoin will be “accretive”—meaning the company can boost its bitcoin holdings per share without showing any obvious dilution.
An Investing.com analysis out this week highlights the growing risks in the corporate token-hoarding trend as bitcoin and ether fall and related equity proxies roll back. It flagged dramatic shifts in crypto-treasury stocks like BitMine Immersion Technologies, Strive, and Forward Industries, with investors pulling back from paying a scarcity premium on these public-company token reserves. 3
The concern extends beyond just token prices. Falling share prices tighten the ability to raise funds for additional buys, cutting off a marginal demand source that had bolstered prices during their rise.
The downside case is straightforward. If bitcoin slips below $70,000 and stays there, equity discounts might deepen, access to capital markets could tighten even more, and the corporate accumulation trade could unravel faster than investors anticipate. A calmer market or renewed ETF inflows might help, but lately, patience has been in short supply.
Investors are focused on three key areas: if ETF outflows continue to grow, whether macro policy moves tighten financial conditions, and how crypto regulation progresses following earlier delays. For Strategy, the immediate concern is whether its stock can maintain a high enough premium to keep operations going.
