MicroStrategy Market Cap Drops Below Bitcoin Holdings as Shares Slump 29%
MSTR•MicroStrategy shares slumped 29% last week to an annual low of $81.81, extending eight straight sessions of losses as Bitcoin declined. Its market capitalization fell below the value of its 847,363 BTC holdings, while its $6.75 billion debt and $15.5 billion of preferred securities outsize cash covering under one year of dividends.
1. Share Performance And NAV Valuation
MicroStrategy’s stock slid to an annual low of $81.81 after an eighth consecutive session of declines, erasing 29% of its value as Bitcoin prices fell below key levels. This downturn pushed the company’s market capitalization below the fair-value of its 847,363 BTC position, reflecting an mNAV under 1.
2. Balance Sheet Strain And Leadership Response
The company carries $6.75 billion in debt and $15.5 billion in preferred securities, while cash reserves cover less than one year of dividend payments. Executive Chairman Michael Saylor has signaled intentions to acquire additional Bitcoin, even as investors debate whether to liquidate assets to shore up liquidity.
