World’s biggest corporate Bitcoin holder now worth less than its BTC - what happened as Wall Street stunned

MicroStrategy Bitcoin Holdings Plunge Below Market Value

The world's largest corporate holder of Bitcoin, MicroStrategy, has seen its stock value drop below the worth of its Bitcoin holdings, leaving Wall Street investors in shock.

Market Cap Hits Record Low

MicroStrategy's stock, MSTR, plummeted 12% on Monday, taking its market capitalization to $45 billion, a far cry from its Bitcoin holdings valued at $55 billion.

Net Bitcoin Holdings Still Exceed Market Cap

• MicroStrategy's net Bitcoin holdings, after accounting for $8.2 billion in debt, are still worth $46.8 billion.
• This is $1.8 billion above the current market cap, marking the first sustained net asset value inversion in the company's history.

CEO Acknowledges Potential Bitcoin Sales

MicroStrategy's CEO, Phong Le, has admitted that Bitcoin sales might be necessary as a "last resort" to manage cash obligations.

Renowned Economist Warns of Trouble Ahead

Renowned economist and Bitcoin critic, Peter Schiff, has predicted trouble for MicroStrategy's stock, stating that the reserve may signal the beginning of the end for the company.

Recent Developments

• MicroStrategy sold 8.2 million MSTR shares to create a $1.44 billion emergency USD reserve to fund dividend payments.
• The company used part of the proceeds to purchase an additional 130 BTC, bringing total holdings to 650,000 BTC.
• Schiff criticized the move, stating that it amounts to an admission that Bitcoin's price could fall and that the company needs cash to support dividend and interest obligations.

Stock Performance

MSTR stock has hit its lowest level since October 2024, trading around $164, a 55% drop since October 6 and over 45% year-to-date.

CryptoQuant CEO, Ki Young Ju, has warned that selling BTC USD below 1x mNAV does not sound like a "good idea" and may lead to a "death spiral" for the company.

• Why is MicroStrategy's market cap below its Bitcoin value? Because the market now values the company at $45 billion while its BTC holdings are worth $55 billion.
• What is the value of MicroStrategy's net Bitcoin holdings? After subtracting debt, the net value is $46.8 billion.