MicroStrategy (MSTR) Market Cap Slides Below Value of Its Bitcoin Holdings
On Nov. 14, 2025, MicroStrategy (MSTR) shares declined as the company’s market cap fell beneath the market value of its Bitcoin reserve, a signal that investors increasingly prefer ETF structures over getting crypto exposure through a corporate entity. Market participants cited easier liquidity, clearer regulatory treatment, and the absence of corporate leverage as reasons for favoring spot Bitcoin ETFs rather than equity tied to crypto holdings.
The gap matters because it creates potential arbitrage pressure and magnifies governance and solvency concerns for shareholders: when equity trades below the value of underlying crypto, management faces pressure to explain capital allocation, address leverage on the balance sheet, or consider buybacks or asset sales. For the broader market, the episode highlights a shift in how investors choose to access Bitcoin exposure and raises the stakes for firms whose business models depend on holding significant crypto assets.