Key facts
- MicroStrategy's valuation has fallen below the value of its bitcoin holdings for the first time.
- The company's enterprise value is now 0.99 times the value of its bitcoin holdings.
- MicroStrategy reported its first bitcoin sale since 2022.
- The company's market capitalization was $29.54 billion as of last close.
- MicroStrategy holds 847,363 bitcoin, worth approximately $50.4 billion.
- Bitcoin is trading near 20-month lows.
MicroStrategy's valuation has fallen below the value of its bitcoin holdings for the first time, a development that has weakened investor confidence in the company's cryptocurrency strategy. The company's enterprise value is now 0.99 times the value of its bitcoin holdings, a metric that has been closely watched by investors. CEO Phong Le had previously indicated that the company might consider selling bitcoin if this ratio dropped below 1.
This milestone comes as MicroStrategy reported its first bitcoin sale since 2022 and a larger first-quarter loss, both impacted by a slump in bitcoin prices. The company's market capitalization stood at $29.54 billion as of the last close, less than half of its peak valuation in 2024, and its shares have declined over 45% year-to-date. MicroStrategy holds 847,363 bitcoin, valued at approximately $50.4 billion based on recent prices.
Bitcoin itself has experienced a significant downturn, trading near 20-month lows after halving in value from its all-time high. Crypto markets have faced a challenging year marked by volatility, investor hype around potential IPOs, and consistent outflows from exchange-traded funds tracking digital assets.