Strategy, Michael Saylor‘s company, saw its share take a significant hit yesterday. This created a striking situation: the Bitcoin (BTC) held by the company was, at that moment, worth more than Strategy‘s total market value. But what does this really say about the company, and should investors be concerned?

Strategy‘s Market Value Falls Below Bitcoin Holdings

According to analyst The Kobeissi Letter on X, Strategy‘s total market value (formerly MicroStrategy) recently fell below the value of its Bitcoin holdings. The company owns 650,000 BTC, with an estimated value of around $55.2 billion. During the dip, the share price fell to about $157, putting the total market value at just $45 billion — more than $10 billion less than the value of its BTC. Notably, this happened while Bitcoin itself was also falling towards $83,400.

Even when factoring in a debt load of $8.2 billion, Kobeissi notes that there remains a positive net position. Including a cash reserve of $1.4 billion, the net value of the BTC holdings comes to $48.4 billion, still higher than the market value at that time. Kobeissi calls this “insane.”

This development shows that investors are currently pricing in significant risks. Strategy‘s business model relies heavily on buying Bitcoin, often financed with loans. In a bull market, investors find this appealing: they are willing to pay a premium for the stock, expecting the BTC value to keep rising. But in declining markets, sentiment can turn quickly.

Strategy Share Down 62% Since All-Time High

The low point proved short-lived. By the end of the trading day, the Nasdaq share price had recovered to around $171, bringing the market value up to approximately $49.25 billion. Still, this remains far below the all-time high of nearly $456 reached in July. Since that peak, the share has fallen more than 62%. Compared to the start of this year, when the share price was around $300, Strategy has also posted significant losses.

With the current Bitcoin price at around $87,000, the value of Strategy‘s BTC holdings is now roughly $56.5 billion. After deducting $8.2 billion in debt, the net value stands at $48.3 billion. This puts the company‘s market value just above the net Bitcoin value once again.

Disclaimer: This is not financial advice. Always consider your own research and consult a professional advisor before investing.