MicroStrategy’s Market Cap Below Bitcoin Holdings

MicroStrategy (MSTR), the company founded by Michael Saylor, has seen its market capitalization fall below the value of its Bitcoin (BTC) holdings. This marks a significant shift after 28 months of a declining premium between the stock price and the value of its Bitcoin assets. Since July 2023, investors would have been better off owning Bitcoin directly instead of purchasing MSTR.

The situation has dampened the enthusiasm of a dedicated investor community known as “Irresponsibly Long MSTR,” who previously championed the concept of “multiple-to-Net Asset Value” (mNAV) to illustrate the premium paid for MSTR compared to simply buying Bitcoin.

MicroStrategy began accumulating Bitcoin in August 2020, with the company’s management, including Saylor and CEO Phong Le, consistently reiterating the mNAV concept.

The mNAV metric, once a source of investor optimism, has plummeted from a high of 3.2x in November 2024 to a current value of 0.96x, signaling the decline of this previously popular and somewhat controversial metric.

To mitigate the negative perception of this decline, MicroStrategy now displays a modified metric called “enterprise value mNAV” on its website, reporting a value of 1.21x by incorporating the value of preferred shares and net debt.

Despite this adjusted figure, the underlying reality remains: MicroStrategy’s market capitalization is now less than the value of the Bitcoin it holds.

The current situation underscores the risks associated with investing in companies that hold significant cryptocurrency assets, especially when the market price of the stock doesn’t reflect the underlying value of those assets.

Investors interested in providing information can contact Protos Leaks securely, and further news updates are available through the company’s social media channels and YouTube channel.

Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility.