Strategy, the largest corporate holder of bitcoin, is experiencing a serious decline in the ranking of the largest public US companies. According to my calculations, based on data from 586 trading sessions, the organization has plummeted to 310th place by market capitalization, losing 77 positions in just 27 trading days.
This drop is not just a random correction. It reflects deep structural issues that I see in Strategy's business model. The company has once again fallen into the second half of the top-500 list, and its market capitalization currently stands at about $33.39 billion with a stock price of $92.10. For comparison, not long ago it was firmly in the top 100.
What is behind the ranking collapse?
To understand the scale, I analyzed the structure of Strategy's holdings. According to my calculations, the company holds assets worth $56 billion, of which $53 billion is in bitcoin and only $3 billion in cash. However, significant liabilities also weigh on the balance sheet: $22 billion in nominal debt and $6.7 billion in credit obligations. After subtracting debt and preferred securities, the company's net equity is about $34 billion. In my view, this indicator reflects Strategy's true position.
The decline itself coincided with pressure on the stock: at the time of observation, Strategy's shares were losing about 2.68%, which pushed the company lower in the list. This is telling given its substantial assets. Even with a large bitcoin reserve, the company proved vulnerable to investor revaluation.
Comparison with ranking neighbors
For contrast, I compared Strategy with Venture Global, which holds net assets of $10.7 billion and earned $4.8 billion in net profit last year. Venture Global's debt is 73% of its fixed asset value, and it trades at a price-to-book ratio of 3.1. On the observation day, its securities rose by 9.15%.
I separately analyzed Twilio's metrics. According to my data, the company holds net assets of $7.7 billion and earned $250 million in net profit, trading at a price-to-earnings ratio of 326. Meanwhile, 55% of Twilio's net assets are goodwill, i.e., a premium above the value of real assets: $5.2 billion out of $9.5 billion. Excluding goodwill, the company's real net assets amount to only $2.5 billion, and the adjusted price-to-book ratio rises to 13.2.
I found a similar picture with Jabil. Excluding goodwill and intangible assets, the company has more liabilities than assets, despite a net profit of $1 billion. This comparison shows that behind similar ranking positions lie companies with vastly different structures.
My conclusion: Strategy's decline is not just a market fluctuation but a symptom of overheating in a model tied exclusively to bitcoin. While other companies demonstrate real profits and growth, Strategy risks becoming a hostage to cryptocurrency volatility. Investors should reconsider their expectations.