Strategy, a company known for its aggressive bitcoin accumulation strategy, is rapidly losing ground in the ranking of the largest U.S. public companies. Over 27 trading sessions, it dropped to 310th place by market capitalization, losing 77 positions. This is not just a correction — it is a signal of deep structural issues in the company's valuation.
According to my analysis, based on data from leading market aggregators, Strategy's market capitalization stands at approximately $33.39 billion, with a share price of $92.10. The company has once again fallen into the second half of the top-500 list, raising questions among investors accustomed to its leadership.
To understand the scale of the decline, I have broken down Strategy's asset structure in detail. The company's balance sheet shows $56 billion in total assets, of which $53 billion is in bitcoin and only $3 billion in cash. However, behind this figure lie significant liabilities: $22 billion in nominal debt and credit obligations, including $6.7 billion in debt and $15 billion in loans. After deducting debts and preferred securities, the company's net equity amounts to about $34 billion. In my view, this indicator reflects the real state of affairs, not the "inflated" market capitalization.
The drop in the ranking 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 dynamic is telling given its substantial assets. Even with a large bitcoin reserve, the company has proven vulnerable to investor revaluation.
Comparison with ranking neighbors
For clarity, I compared Strategy with Venture Global, which occupies a neighboring position. Venture Global has net assets of $10.7 billion and net profit of $4.8 billion over the past year. Its debt is 73% of the value of fixed assets, and it trades at a price-to-book ratio of 3.1. On the day of observation, its shares rose by 9.15%. This is a stark contrast to Strategy, whose value is almost entirely dependent on cryptocurrency volatility.
Another illustrative example is Twilio. The company has net assets of $7.7 billion, net profit of $250 million, and trades at a price-to-earnings ratio of 326. However, 55% of its net assets are goodwill — a premium above the value of real assets from acquisitions: $5.2 billion out of $9.5 billion. Excluding goodwill, real net assets amount to only $2.5 billion, and the adjusted price-to-book ratio rises to 13.2. This shows that behind similar ranking positions lie companies with fundamentally different structures.
A similar picture is seen with Jabil: excluding goodwill and intangible assets, liabilities exceed assets, despite net profit being $1 billion. Such a comparison, in my opinion, highlights that the market capitalization ranking is just the tip of the iceberg, hiding fundamentally different business models.
My expert opinion: Strategy's decline in the ranking is not a coincidence but a natural result of the market reassessing its dependence on bitcoin. As long as the cryptocurrency rises, the company looks attractive, but during a correction, its vulnerability becomes obvious. Investors should look not at market capitalization but at real assets and debt burden — and in this regard, Strategy lags behind many "traditional" giants.