TechFlow reports that on June 9, Fortune magazine published an analysis stating that although Bitcoin’s recent decline has weakened Strategy (MSTR)’s stock price, the company’s current market capitalization still trades at a ~31% premium to its underlying net asset value. The analysis attributes this premium to the market’s prior endorsement of Michael Saylor’s “Bitcoin appreciation flywheel” model; however, as this model loses efficacy, the associated premium faces further compression risk.
According to calculations, Strategy currently holds approximately 844,000 bitcoins, valued at roughly $51.1 billion at $60,500 per bitcoin. Adding its software business and cash assets brings total assets to approximately $53.6 billion. After deducting liabilities—including ~$6.7 billion in convertible bonds and $15.5 billion in preferred stock—the net asset value attributable to common shareholders stands at ~$31.8 billion. Yet, as of June 5, the company’s market capitalization remained at $41.6 billion—approximately $10 billion above its net asset value.
The analysis suggests that, to meet rising preferred-stock dividend obligations, Strategy may need to continually issue additional preferred shares—or even sell portions of its Bitcoin holdings—potentially triggering a negative feedback loop known as a “death spiral”: issuing preferred shares → paying dividends → requiring further financing.
