Strategy’s market capitalization has fallen below the value of the company’s bitcoin reserves
This is the first time since 2020 that the company’s shareholder value has turned negative relative to the value of its bitcoin holdings, when Strategy began aggressively accumulating cryptocurrency as a hedge against inflation. At a share price of $184, Strategy’s current market capitalization stands at about $49 billion, while the value of its 650,000 BTC reserves exceeds $59 billion.
Thus, Strategy shares are trading roughly 5–6% below the value of the company’s bitcoin reserves. To reach its net asset value without a discount at the current bitcoin price, MSTR shares would need to rise to approximately $197.
If the price of bitcoin drops below $80,000, Strategy may face the need to sell part of its crypto reserves to service its debt. Considering that the company holds about 3% of the total bitcoin supply, such sales could create additional pressure on the market and intensify sell-offs of the leading cryptocurrency.
The day before, Strategy CEO Phong Le stated that the company would only begin selling bitcoin if it loses the ability to raise new financing. According to him, although selling BTC is possible strictly as a last resort, it will not affect the company’s investment strategy and would be only a temporary deviation from its policy of accumulating bitcoin as a reserve asset.
See also: "Trust Wallet Launches Predictions Forecasting Service"
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