The divergence stems from Strategy’s shift to dollar-cost averaging (DCA) during price peaks, contrasting with its previous lump-sum buying at market lows. This conservative approach aims to reduce volatility impact but risks underperforming during parabolic rallies.
Market analysts note that Strategy’s mNAV (modified net asset value) compression indicates decreasing premium to Bitcoin holdings, suggesting investors prefer direct exposure. The fund’s revised custody strategy involving multiple institutional custodiers, while enhancing security, has increased operational costs that eat into returns.
This divergence highlights evolving institutional Bitcoin strategies post-ETF approval. Some asset managers now prefer customized treasury solutions over standardized products. Strategy’s experience may influence future crypto fund structures, particularly in balancing security costs with return optimization in maturing markets.
