MicroStrategy’s Market Cap Falls Billions Below Its Bitcoin Holdings

MicroStrategy suffered a catastrophic begin to December as its market cap briefly fell beneath the online worth of its Bitcoin holdings, exposing the corporate to renewed issues about leverage, liquidity, and investor confidence.

Shares collapsed early Monday, dropping to $156, which pushed MicroStrategy’s valuation to $45 billion. 

Wall Street Nightmare For MicroStrategy?

The firm at present holds 650,000 BTC value roughly $55.2 billion, making this drop a uncommon second the place Wall Street valued the enterprise at lower than its underlying property.

However, MicroStrategy additionally carries $8.2 billion in debt. After subtracting that debt and adding the firm’s $1.4 billion cash reserve, the corporate nonetheless holds about $48.4 billion in web Bitcoin worth. 

This means the inventory fell $3.4 billion beneath its Bitcoin-adjusted value on the session low.

MicroStrategy’s Current Situation:

1. Bitcoin holdings: $55.2 billion
2. Debt holdings: $8.2 billion
3. Cash reserve (introduced in the present day): $1.4 billion
4. Bitcoin holdings – Debt + Cash: $48.4 billion
5. Market cap of $MSTR: $45 billion

MicroStrategy’s NET Bitcoin holdings are… https://t.co/Ii4T6dEFo8

— The Kobeissi Letter (@KobeissiLetter) December 1, 2025

The disconnect shocked merchants. MicroStrategy usually trades at a premium as a result of markets worth in Michael Saylor’s aggressive Bitcoin technique, future BTC purchases, and the inventory’s function as a regulated Bitcoin proxy. 

Yet Monday’s sell-off forced the premium into one of its tightest ranges of the yr.

Such a nasty take.

A) Bitcoin worth would crash if Saylor bought. And there’s not sufficient liquidity to exit the place. He is the liquidity. Institutions have been web sellers.

B) Debt isn’t free. There’s common curiosity funds. Therefore he should promote extra shares in perpetuity. pic.twitter.com/fsChvN4DHW

— Beanie (@beaniemaxi) December 1, 2025

By noon, the corporate’s mNAV ratio—which measures how far the inventory trades above or beneath Bitcoin web asset worth—recovered to 1.16, far beneath the degrees seen earlier in 2025. 

The studying exhibits the market now values MicroStrategy solely 16% above its Bitcoin holdings, in contrast with premiums exceeding 50% through the yr’s rally.

A Critical Risk Period for MicroStrategy and Bitcoin

The sharp repricing displays rising investor fears. Bitcoin has dropped from $125,000 to $85,500 since October, erasing tens of billions in paper worth from MicroStrategy’s balance sheet. 

The decline coincided with tightening liquidity, falling ETF inflows, and an industry-wide reset in danger urge for food.

Concerns about Saylor’s long-term technique additionally resurfaced. Critics argue the corporate’s debt have to be serviced no matter Bitcoin’s efficiency, growing strain to lift new capital or promote extra shares. 

Others warn that MicroStrategy’s place is now so giant that Saylor can not cut back danger with out destabilizing the market.

Still, the corporate stays the biggest company Bitcoin holder on this planet, and its holdings proceed to exceed its market cap. 

The rebound later within the day exhibits buyers will not be abandoning the inventory, however they’re reassessing the dangers extra aggressively than at any level this yr.

MicroStrategy begins December with its tightest valuation hole in years, signaling a turning level in how markets view the corporate’s leveraged Bitcoin technique. 

Whether this marks a brief panic or the beginning of a deeper correction will rely upon Bitcoin’s stability and the corporate’s subsequent strikes.

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