Strategy remains the world’s largest corporate holder of Bitcoin. As at 23 August, the company held 840,447 BTC, or around 4 per cent of the maximum possible supply of the first cryptocurrency.
With BTC trading at $77,004, its Bitcoin reserves were valued at $64.72 billion, whilst Strategy’s market capitalisation stood at around $49.6 billion.
At first glance, it appears that investors value the entire company less than the bitcoins it owns.
However, such a comparison is incomplete. In addition to BTC, Strategy held $6.69 billion in dollar-denominated assets, but at the same time had around $6.75 billion in debt and $14.97 billion in preference shares, which take precedence over ordinary shareholders in the capital structure.
After taking these liabilities into account, Strategy itself estimated the net value of its reserves at approximately $49.68 billion — almost the same as its market capitalisation.
This is precisely why the company’s mNAV ratio stood at around 1.01x as at 23 August. In other words, the huge premium that investors had previously paid for the opportunity to gain indirect exposure to Bitcoin via MSTR has virtually disappeared.
This is a fundamental shift in Sailor’s model: Strategy remains the world’s largest Bitcoin treasury, yet its shares are increasingly valued as a financial entity holding BTC, debt and expensive preference capital, rather than as ‘Bitcoin with a premium’.