Strategy Corporation, known for its aggressive Bitcoin accumulation strategy, is rapidly losing ground in the ranking of the largest US public companies. According to my data analysis, over the past 27 trading sessions, the company has dropped 77 positions and now ranks only 310th by market capitalization. This has pushed it out of the top 300, which is a worrying signal for investors.
At the time of assessment, Strategy's market capitalization was approximately $33.39 billion, with a stock price of $92.10. However, behind this figure lies a complex structure of assets and liabilities. My analysis shows that the company holds $56 billion in assets, of which $53 billion is in Bitcoin and only $3 billion in cash. Meanwhile, the debt burden is significant: $22 billion in nominal debt, including $6.7 billion in bonds and $15 billion in loans.
After subtracting debts and preferred securities, Strategy's net equity amounts to approximately $34 billion. In my opinion, this indicator most accurately reflects the real state of affairs. The drop in the ranking coincided with pressure on the stock: on the observation day, the company's shares lost about 2.68%, which pushed it down the list.
Comparison with ranking neighbors: different worlds
For clarity, I compared Strategy with Venture Global, a company occupying a neighboring position. Its net assets amount to $10.7 billion, and over the past year, it earned $4.8 billion in net profit. Venture Global's debt equals 73% of its fixed asset value, and its price-to-book ratio is 3.1. On the observation day, its shares rose by 9.15%.
Another example is Twilio. The company has net assets of $7.7 billion and $250 million in net profit, but it trades at a price-to-earnings ratio of 326. However, 55% of its net assets are goodwill: $5.2 billion out of $9.5 billion. Excluding goodwill, Twilio's real net assets amount to only $2.5 billion, and the adjusted price-to-book ratio soars to 13.2.
A similar picture is seen with Jabil: excluding goodwill and intangible assets, its liabilities exceed assets, despite $1 billion in net profit. These comparisons show that behind similar ranking positions lie companies with fundamentally different capital structures.
My conclusion: Strategy's decline is not so much a crisis of its business model as it is a market reassessment of risks associated with high debt leverage and dependence on a volatile asset. Investors should pay closer attention to net equity rather than market capitalization.