MicroStrategy’s Bitcoin Bet Pays Off: Holdings Now Exceed Entire Company Valuation

In a stunning twist of corporate finance, MicroStrategy's Bitcoin treasury now outweighs its market cap—proving once again that crypto assets can flip traditional valuation models on their head.

The ultimate HODL strategy? Michael Saylor's relentless BTC accumulation has turned the enterprise software firm into a de facto Bitcoin ETF with extra steps.

Wall Street analysts scramble to update valuation models while crypto natives chuckle at the irony—a legacy tech company being carried by the very asset class it once dismissed as 'fringe'.

One thing's certain: in the race between Bitcoin adoption and corporate relevance, the orange coin is lapping the competition.

Bitcoin’s price hovers around $85,000, while altcoins suffer double-digit losses, creating a stir in the cryptocurrency market. Meanwhile, MicroStrategy (MSTR) is experiencing one of its worst days. December has started as a head-spinning month for cryptocurrencies. The interesting scenario that has emerged with today’s MSTR decline has captured attention. What’s happening?

MicroStrategy’s BTC Holdings

Currently, MicroStrategy’s market valuation is $10 billion less than its Bitcoin$85,977 holdings. Normally, the value of the company would significantly exceed the value of its BTC assets. This indicates that the company’s stock has been excessively sold. Prolonged sales over several months have resulted in the MSTR graph performing worse than Bitcoin itself. Observers have highlighted this significant change.

“MSTR has lost 12% today and 57% since October 6. This decreases the company’s market value to $45 billion. Meanwhile, MicroStrategy owns 650,000 Bitcoins worth $55 billion. In other words, MicroStrategy’s market value is currently $10 billion LESS than its bitcoin assets. Even if you deduct the current $8.2 billion debt from MicroStrategy’s Bitcoin holdings, they still have $46.8 billion in Bitcoin on a NET basis. MicroStrategy’s NET Bitcoin holdings, excluding their cash balance, still exceed their current market value by $1.8 billion. Can Saylor continue buying?”

Therefore, even if the company went bankrupt or was forced to repurchase all its shares, its Bitcoin reserve WOULD suffice. Will this help ease the excessive selling on the MSTR front and dispel the fear, uncertainty, and doubt? Only time will tell.

MSTR Decline

Imagine an altcoin team opting to make staking payments in USD by selling tokens for cash reserves. What would happen? Investors would likely sell off, causing the altcoin’s price to decline. That’s precisely what we witnessed today.

Saylor has been raising cash reserves not to buy Bitcoin, but to finance MSTR’s interest and dividend obligations by selling shares. Peter Schiff has called today the beginning of the end for MicroStrategy (MSTR).

“The stock has collapsed. This business model is a kind of fraud and Saylor is Wall Street’s biggest con artist.” – Peter Schiff

MSTR secured a reserve to cover the $1.44 billion required for 21 months of preferred dividends and interest payments through ATM stock sales. This MOVE reduced the risk of having to sell Bitcoin to pay dividends. MSTR’s MNAV has stabilized with a 0.01 increase for now. However, if MSCI issues an unfavorable classification decision on January 15, it will pose additional challenges for MSTR.