MicroStrategy Shares Trade Below Bitcoin Net Asset Value
MicroStrategy shares fell to $223.38, cutting its market cap to about $65.34 billion—below the $65.49 billion–$66.59 billion net asset value (NAV) of its 641,692 BTC holdings. This rare NAV discount marks the first time MSTR stock trades under its Bitcoin NAV. MicroStrategy holds 641,690 BTC at an average cost of $74,080, now up roughly 39%. Despite Michael Saylor’s strategy and software revenue historically supporting a premium, traders now show a preference for direct bitcoin purchases. The NAV gap highlights undervaluation in MicroStrategy stock, opening arbitrage opportunities and potentially shifting asset allocation between MSTR shares and BTC.
Bullish
The NAV discount in MicroStrategy shares signals that investors may shift funds from MSTR stock into direct Bitcoin purchases, increasing BTC demand. In the short term, this could drive upward pressure on bitcoin prices as traders capitalize on arbitrage and rebalance portfolios. Over the long term, sustained interest in Bitcoin stemming from MicroStrategy’s large holdings and high-profile strategy solidifies BTC’s role as a core asset, potentially supporting a bullish trend. Historical NAV discounts have often led to both share price recoveries and strengthened bitcoin demand, underscoring the bullish outlook for BTC.