Strategy (formerly MicroStrategy) traded below the value of its Bitcoin holdings this week, signaling rare investor caution toward the largest company holding BTC.
The stock fell to an intraday market cap of around $65.34 billion, falling below the $66.59 billion value of its 641,692 Bitcoins.
This created a temporary negative premium. It showed that stock markets value MicroStrategy’s business and dilution risks higher than the value of its digital assets.
This move stands out because MicroStrategy typically trades above the value of its holdings.
Bitcoin markets added more context. BTC fluctuated between $100,000 and $105,000 during the week, falling around 2%.
Sentiment remains fragile, with the crypto Fear and Greed Index hovering in extreme fear territory.
Despite this cautious backdrop, Bitcoin has maintained a narrower range than MicroStrategy stock. Traders viewed BTC as a cleaner exposure while treating MicroStrategy as a leveraged proxy.
This divergence grew stronger as MicroStrategy continued to raise capital through equity and preferred stock offerings.
Additionally, the company recently added another 487 BTC for $49.9 million. The purchase kept its long-term strategy unchanged, even as its shares faced selling pressure.
Investors appeared worried about future dilution and the company’s growing debt load.
However, the reduction was short-lived. MicroStrategy’s stock quickly rose above its effective net asset value.
Nonetheless, the event highlighted a change in behavior among institutional traders.
The market rewards direct exposure to Bitcoin over corporate structures that hold Bitcoin. This also indicates that stock investors are now differentiating between BTC as an asset and MicroStrategy as a business with operational and financial risks.
For Bitcoin holders, this episode reinforces the relative strength of the asset despite weak sentiment.
