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MicroStrategy’s BTC Holding Worth More Than Company’s Market Cap

In Business
January 12, 2024
MicroStrategy’s BTC Holding Worth More Than Company’s Market Cap

MicroStrategy’s BTC Holding Worth More Than Company’s Market Cap

MicroStrategy, the data software firm known for its aggressive Bitcoin investment strategy, has faced headwinds in the New Year, with its stock price slipping more than 20% in January. This decline comes despite a 10% gain for Bitcoin in the same period.

MicroStrategy’s woes can be attributed to several factors, including the recent launch of spot Bitcoin exchange-traded funds (ETFs). These ETFs provide investors with a more direct way to gain exposure to Bitcoin, potentially reducing the appeal of MicroStrategy as a proxy investment.

MicroStrategy’s Bitcoin holdings, currently valued at $8.7 billion, exceed the company’s market capitalization, which stands at around $7.7 billion. This means that the company’s Bitcoin is worth more than the actual business.

Adding to MicroStrategy’s challenges is the selling pressure from its former CEO, Michael Saylor, who plans to sell 315,000 company shares, valued at $170.5 million. Saylor has already sold 30,000 shares for $19.1 million, further weighing on the stock price.

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