MicroStrategy has reached a record net asset value (NAV) premium, now at 2.5 times the value of its Bitcoin holdings. This article analyzes the causes and effects of this phenomenon.

NAV Premium and Its Significance

The NAV premium measures how much MicroStrategy’s market value exceeds the worth of its Bitcoin. Currently, the company is valued at $37.14 billion, while its 252,220 Bitcoin holdings are worth $15.1 billion in market cap.

Impact on MSTR Stock Value

The MSTR price ratio to Bitcoin price is now at 0.0030, the highest since it began buying Bitcoin in 2020. Since CEO Michael Saylor focused the company on Bitcoin, MicroStrategy has become the largest public holder of this cryptocurrency. The company's stock has risen over 240% in 2024 after the launch of Bitcoin spot exchange-traded funds (ETFs) in January.

Strategy and Bitcoin Purchases

MicroStrategy has been actively increasing its Bitcoin holdings by raising funds through stock sales and convertible debt. As a result, the company’s Bitcoin per share has grown to 0.0012. Recently, the company added 18,300 bitcoins to its holding, its largest purchase since 2021.

MicroStrategy continues to actively invest in Bitcoin, leading to significant growth in its market value relative to its Bitcoin holdings. This strategy helps the company strengthen its position in the cryptocurrency market.