MicroStrategy stocks are attracting investor attention amid discussions on how the company uses debt to amplify its Bitcoin portfolio. Founder Michael Saylor highlighted several factors contributing to the trading premium of the stock over its Bitcoin assets.
Leveraging to Increase Holdings
Michael Saylor pointed out that MicroStrategy stocks are often rated higher than the value of its Bitcoin per share. One reason for this is the use of debt to acquire more Bitcoin. The company employs convertible bonds and other borrowing models to increase its Bitcoin position by two to four times compared to its equity. As of August 2025, MicroStrategy owned 628,946 Bitcoins, with an acquisition cost of $46.10 billion. This means the company's performance could be more sensitive to changes in Bitcoin prices in the long run.
Active Options Trading Advantages
Saylor noted the active market for MicroStrategy stock options, with open interest exceeding $100 billion. This provides investors with various ways to take positions on the stock beyond simply buying or selling shares. Meanwhile, the options markets for spot Bitcoin ETFs are much smaller, leading to potentially higher trading activity and maintaining a premium for MicroStrategy.
Index Fund Purchases of MicroStrategy Stock
MicroStrategy is included in several key stock indices, such as NASDAQ 100 and MSCI. Funds tracking these indices automatically buy shares, creating a steady source of demand. Unlike Bitcoin and spot Bitcoin ETFs, MicroStrategy shares benefit from inflows from these investment vehicles, which helps to sustain a higher price for the stock.
In summary, it is evident that the structural advantages of MicroStrategy could justify the premium of its stock over the value of its Bitcoin holdings. Investors may also consider other ways to gain Bitcoin exposure through equities.
