Inside Michael Saylor's Bitcoin Strategy (4:18)
Institutional interest in MicroStrategy, now known as Strategy (NASDAQ: MSTR) appears to be intensifying despite Bitcoin crash.
Charles Schwab has reportedly increased its position in Michael Saylor's firm by purchasing an additional 91,859 shares, as per BitcoinTreasuries.NET.
The move brings the banking and brokerage giant’s total holdings to approximately 1.27 million shares, valued at roughly $168 million.
Related: Charles Schwab next in line for bitcoin ETF, analysts predict
Schwab expands exposure as Strategy doubles down
Strategy recently boosted its Bitcoin (BTC) holdings again, adding 2,486 BTC in a $168.4 million purchase. The company now holds 717,131 BTC in total.
It makes Strategy still the largest corporate Bitcoin holder globally.
However, the company’s financial statements show an inherent volatility in that strategy.
For the year ended Dec. 31, 2025, Strategy reported $5.40 billion in unrealized losses on digital assets, partially offset by a $1.55 billion deferred tax benefit. In the fourth quarter alone, unrealized losses reached $17.44 billion, alongside a $5.01 billion deferred tax benefit.
As of year-end, Strategy carried a deferred tax liability of $2.42 billion.
Meanwhile, MSTR shares have been under pressure. At press time, the stock was down 4.46% at $127.91, falling 18.61% year-to-date and 64.82% over the past six months.
Popular on TheStreet Roundtable:
Select Americans receive $1,200 in monthly payments as rents soar
Another company makes a U.S. comeback
Gold, silver, S&P 500, crypto crash again amid extreme fear
European bank makes MicroStrategy bet
Charles Schwab is not alone.
Italian banking giant Intesa Sanpaolo disclosed a sizable put option position tied to Strategy shares, valued at approximately $184.6 million.
However, Put options give the holder the right, but not the obligation, to sell shares at a predetermined price. The structure of Intesa’s position suggests a more nuanced trade, potentially betting on convergence between Strategy’s stock price and the value of its Bitcoin holdings.
The mNAV trade
Strategy has historically traded at a premium to the value of its Bitcoin reserves, a metric commonly measured by multiple of net asset value, or mNAV.
At press time, the company's mNAV stood at 1.19.
This means the company is valued at a 19% premium to the market value of its Bitcoin holdings. In practical terms, investors are paying $1.19 for every $1.00 worth of Bitcoin on Strategy’s balance sheet.
That premium reflects expectations around leverage, future Bitcoin purchases, capital markets strategy, or equity market demand.
If mNAV falls from 1.19 to 1.0, the stock price would decline even if Bitcoin’s price remains unchanged. In that scenario, put options and short positions would benefit, since they profit from a falling stock price.
However, there is a risk for such bearish positions. If Bitcoin rallies strongly, mNAV can expand again. In such cases, the stock often outperforms Bitcoin itself, creating sharp upward moves and even short squeezes.
Related: Michael Saylor finally addresses short-sellers as mNav drops