MicroStrategy, the largest corporate holder of Bitcoin on the planet, has entered a situation that, until now, seemed mathematically impossible. For the first time in the company’s history, its market cap has fallen below the value of its Bitcoin holdings.
MicroStrategy stock has been hammered for weeks. It dropped 12% today and is now down 57% since October 6, pushing the company’s market capitalization to just $45 billion. The problem? The firm owns 650,000 BTC, worth roughly $55–56 billion at current prices.
That means Wall Street is now valuing MicroStrategy at $10 billion less than the Bitcoin it owns.
Even after accounting for the company’s $8.2 billion in debt, the math is still pretty insanse. On a net basis, MicroStrategy holds roughly $46.8 billion worth of Bitcoin, still higher than the company’s entire market cap. In other words, markets are pricing the operating business, the brand, the software division, and the entire corporate structure at negative value.
This is the first sustained NAV inversion since MicroStrategy began accumulating BTC in 2020 — a reversal of the premium that once fueled its entire corporate Bitcoin strategy.
This is absolutely insane:
— The Kobeissi Letter (@KobeissiLetter) December 1, 2025
MicroStrategy's market cap is now worth $10 billion LESS than their Bitcoin holdings.
MicroStrategy, $MSTR, is down -12% today and -57% since October 6th.
This puts the company's market cap at $45 billion.
Meanwhile, MicroStrategy holds 650,000… pic.twitter.com/1ZTvhFNSv8
The warning signs have been building.
The company quietly created a $1.44 billion emergency cash reserve to support dividend payouts. For the first time in five years, the CEO admitted that selling Bitcoin is possible “as a last resort.” The stock’s 57% drawdown has erased the valuation premium that once allowed MicroStrategy to issue debt and equity to buy more BTC. The reflexive flywheel that turned a $250 million position into a $56 billion treasury has flipped into reverse.
External pressure is rising too.
In 44 days, MSCI will decide whether to remove MicroStrategy from global stock indices. JPMorgan estimates $8.8 billion in forced selling if that happens. The company also carries $7.8 billion in preferred stock, bringing total obligations to around $16 billion.
With an average Bitcoin cost basis near $74,436, MicroStrategy is only about 15% above break-even. A big move lower would erase years of unrealized gains; the very gains that once justified the corporation’s ultra-leveraged Bitcoin strategy.
This is no longer just a corporate earnings story.
It’s a referendum on whether public companies can hold Bitcoin at scale without being crushed by traditional market mechanics, margin structure, and forced-selling dynamics.
The largest experiment in corporate Bitcoin adoption is now under extreme stress.
January 15, 2026 (MSCI’s decision date) may determine whether MicroStrategy survives the next chapter of its own Bitcoin standard, or whether the legacy financial system will break the model entirely.
The reckoning has begun.
Read also: Arthur Hayes Warns: Tether’s Bitcoin and Gold Bet Could Trigger a Solvency Crisis
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