Strategy (MSTR), the largest corporate holder of Bitcoin (BTC), now has a total market value of billions of dollars below the value of the cryptocurrency it owns. As of December 3, the company’s market capitalization sits near $50.7 billion, while its BTC reserve is valued at approximately $60.4 billion.

The situation has created a historic valuation gap, meaning investors can effectively buy Strategy’s Bitcoin at a discount while getting its software business and operations for a negative price.

A Bizarre Market Disconnect

According to the financial commentary platform, The Kobeissi Letter, even after accounting for Strategy’s $8.2 billion debt load, its net BTC holdings are worth about $48.6 billion, meaning the market is assigning a negative value to everything else the company does.

This inversion has deepened during a sharp stock sell-off. Since early October, MSTR shares have fallen roughly 57%, with analysts pointing to several compounding pressures.

Research firm Bull Theory noted that JPMorgan had raised margin requirements for trading MSTR, short interest had grown, and a potential reclassification by index provider MSCI early next year threatens to trigger billions in institutional selling.

“This does not look like regular market movement,” it posted. “It looks like large players actively pushing the stock lower.”

That perspective was echoed and intensified by author Shanaka Anslem Perera, who framed the upcoming decision by the global index giant as a critical countdown.

“MSCI decides whether Bitcoin treasury companies belong in stock indices. JPMorgan calculates $2.8 billion in forced selling if Strategy is removed. Index funds do not choose. They execute,” he stated.

Both analyses reinforced the view that external market mechanics, rather than the company’s fundamentals, are behind the decline.

Community Debate Over Strategy and Risk

Meanwhile, Strategy had earlier moved to fortify its balance sheet in response to the market turbulence, announcing a new $1.44 billion cash reserve, funded by previous stock sales, that would specifically cover dividend and interest payments for at least 21 months.

Although Executive Chairman Michael Saylor framed it as a step to “navigate short-term market volatility,” a comment made by CEO Phong Le about potentially liquidating portions of the firm’s stash to fund dividend payments below 1x mNAV elicited more reaction from the online BTC community.

Critics claimed it contradicted Saylor’s long-standing mantra that the firm would “never sell,” while supporters viewed the cash reserve as a sign of strength.

“Strategy just pulled off one of the cleanest liquidity pivots in modern corporate finance,” commented investor Adam Livingston, arguing the move protects the company from forced BTC sales.

The intense focus has also raised concerns about concentration risk, as Strategy now controls over 3% of the total Bitcoin supply. Crypto commentator Ran Neuner expressed caution regarding the situation, stating, “We really don’t want MSTR buying more BTC at this stage… the concentration risk is VERY HIGH!”

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