Strategy Is Now Worth Less Than the Bitcoin Sitting on Its Own Balance Sheet

Strategy's (formerly MicroStrategy) market capitalization has dropped below the value of the bitcoin it holds for the first time: roughly $36.3 billion versus $53.7 billion worth of BTC, Yahoo Finance reports. The company holds 847,363 BTC — more than any other public company on earth.

This metric is called mNAV — the company's market price divided by the value of its bitcoin reserves. An mNAV of 1 means the stock is worth exactly as much as the bitcoin on the balance sheet. Strategy's mNAV now sits around 0.68 — the market is effectively valuing the company for less than the sum of the coins it simply owns, The Block reports.

Why this happens: for years, Strategy raised investor money by issuing new shares priced above the value of its bitcoin, then used that cash to buy more bitcoin. The playbook works as long as investors keep paying a premium. When confidence falls along with the market, that premium can vanish and flip into a discount, CryptoTimes notes.

What it means in practice: while mNAV stays below 1, the company's usual playbook stops making sense — issuing shares to buy more bitcoin would mean selling a piece of the business for less than the reserves it already has are worth.

This article is for informational purposes only and does not constitute investment advice.