MicroStrategy Shares Hit $81.81 Low as mNAV Falls Below 1
MSTR•MicroStrategy shares fell 3.5%, hitting an annual low of $81.81 as a 28% drop in Bitcoin weighed on the stock and erased 29% of its value last week. Market capitalization dropped below Bitcoin holdings (mNAV under 1) as $6.75 billion debt and $15.5 billion preferred obligations strain cash for dividends.
1. Shares Plunge to Annual Low
Shares of MicroStrategy closed at $81.81 on Friday, marking an annual low after a 3.5% decline brought last week’s losses to 29% as Bitcoin’s price fell by nearly 28% over the same period.
2. Market Cap Drops Below Bitcoin Holdings
Market capitalization slipped below the value of the company’s Bitcoin holdings, pushing its mNAV ratio under 1 for the first time and signaling a lack of premium over its underlying assets.
3. Debt Profile and Future Outlook
MicroStrategy carries $6.75 billion of debt and $15.5 billion in preferred obligations, with cash reserves sufficient for less than one year of dividend payments. Executive chairman Michael Saylor indicated plans to buy more Bitcoin, potentially altering the firm’s asset profile.
