Strategy (formerly MicroStrategy) continues its rapid decline in the ranking of the largest U.S. public companies. As of the 586th trading day of observation, it has dropped to 310th place by market capitalization, losing 77 positions over the last 27 trading sessions and finally exiting the top 300.
Fundamental Gap: Assets vs. Market Price
Strategy's market capitalization is approximately $33.39 billion with a stock price of $92.10. However, behind these figures lies a significant imbalance. According to my analysis of the holding structure, the company owns assets worth $56 billion, of which $53 billion is in Bitcoin and only $3 billion in cash.
At the same time, the balance sheet shows substantial liabilities: $22 billion in nominal debt and $6.7 billion in credit obligations. After deducting debt and preferred securities, the company's net equity stands at around $34 billion. In my view, this indicator reflects the real state of affairs, not the inflated market valuation.
Pressure on Shares and Market Revaluation
The decline in the ranking coincided with pressure on Strategy's shares. At the time of observation, the stock was losing about 2.68%, which pushed the company further down the list. This dynamic is telling: even with the largest corporate Bitcoin holdings, Strategy proved vulnerable to investor revaluation.
Comparison with Ranking Neighbors: Who Is Truly More Efficient?
For clarity, I compared Strategy with companies occupying adjacent positions. Take Venture Global: with net assets of $10.7 billion, it earned $4.8 billion in net profit last year. Its debt amounts to 73% of the value of fixed assets, but it trades at a price-to-book ratio of 3.1. On the observation day, its shares rose by 9.15%.
Another example is Twilio. The company holds $7.7 billion in net assets and earned $250 million in net profit, trading at a price-to-earnings multiple of 326. However, 55% of its net assets are goodwill ($5.2 billion out of $9.5 billion in total assets). Excluding goodwill, Twilio's real net assets amount to only $2.5 billion, and the adjusted price-to-book ratio rises to 13.2.
A similar picture is seen with Jabil: excluding goodwill and intangible assets, liabilities exceed assets, despite a net profit of $1 billion.
My conclusion: Behind similar positions in the ranking are companies with vastly different structures. Strategy is essentially a Bitcoin ETF with debt leverage, not a classic business with stable operating profit. Until the market reassesses this model, pressure on the stock and further declines in rankings may continue.