MicroStrategy’s Market Cap Falls Billions Below Its Bitcoin Holdings

Core Insights - MicroStrategy's market cap briefly fell below the net value of its Bitcoin holdings, raising concerns about leverage, liquidity, and investor confidence [1][2] - The company holds 650,000 BTC valued at approximately $55.2 billion, but also carries $8.2 billion in debt, resulting in a net Bitcoin value of about $48.4 billion after accounting for cash reserves [2] - The stock price dropped to $156, leading to a valuation of $45 billion, which is $3.4 billion below its Bitcoin-adjusted worth at the session low [2] Market Reaction - The disconnect between MicroStrategy's stock price and its Bitcoin holdings shocked traders, as the company typically trades at a premium due to its aggressive Bitcoin strategy [3] - Following the sell-off, the company's mNAV ratio, which indicates how the stock trades relative to its Bitcoin net asset value, recovered to 1.16, significantly lower than earlier levels in 2025 [4] - The current market valuation places MicroStrategy only 16% above its Bitcoin holdings, compared to premiums exceeding 50% during the year's rally [4]