The financial landscape for MicroStrategy has taken a notable turn as its longstanding correlation between stock value and Bitcoin holdings appears to be weakening. This development signifies a critical point for the company, known for integrating cryptocurrency into its corporate strategy.
Recently, it was reported that MicroStrategy”s market capitalization, currently at $64.54 billion, has dipped below the value of its substantial Bitcoin assets, which stand at approximately $66.15 billion. This marks a rare event for MicroStrategy, the largest corporate holder of Bitcoin, as its stock has traditionally enjoyed a premium linked to its cryptocurrency investments.
Analyst AB Kuai Dong highlighted this shift, stating, “MicroStrategy”s total market cap has already fallen below the value of the Bitcoin it holds! Now, the premium market for MicroStrategy has truly come to an end.” Despite this, the company retains a significant amount of unrealized gains, holding 641,692 BTC at an average cost of $74,085 per coin. This means that even if the price of Bitcoin were to drop to $102,918, MicroStrategy would still experience a 39.10% gain.
MicroStrategy”s strategy for accumulating Bitcoin has involved an aggressive convertible bond financing model, allowing it to acquire cryptocurrency without diluting shareholders” equity. Unlike other ventures, this method has provided the firm with the ability to benefit from Bitcoin”s price appreciation while maintaining shareholder value.
However, signs indicate that the financing momentum may be slowing. With the company”s stock facing downward pressure and a cautious sentiment among bond buyers, the appetite for new convertible bonds has diminished. Since February 2025, MicroStrategy has pivoted towards issuing preferred shares, which offer higher interest rates to attract investors in a tightening market.
Recent data from analytics firm Glassnode reveals that long-term Bitcoin holders are increasingly cashing out profits around the $100,000 mark. This trend suggests a drop in supply among long-term holders, as many are opting to distribute their assets amid stagnating prices. Chris Kuiper, vice president of research at Fidelity Digital Assets, has noted a sense of fatigue among veteran holders, indicating a potential shift in market dynamics.
This moment poses a significant test for MicroStrategy and its CEO, Michael Saylor. While the firm continues to show profitability on paper, it must navigate a landscape of tightening financing options and evolving investor sentiment. As bond markets cool and long-term holders take profits, the company”s strategy to sustain its aggressive accumulation of Bitcoin will be critically assessed in the coming months.
