Strategy (formerly MicroStrategy) is rapidly losing ground in the ranking of the largest public corporations in the United States. After 586 trading days of observation, it has dropped to 310th place by market capitalization, losing 77 positions in just 27 trading sessions. This decline is one of the clearest signals of the market reassessing a business model built on bitcoin.
The company's market capitalization is approximately $33.39 billion, with a stock price of $92.10. However, behind this figure lies a much more complex picture. According to my calculations, based on an analysis of the balance sheet structure, Strategy holds $56 billion in assets, of which $53 billion is in bitcoin and only $3 billion in cash. Meanwhile, its debt burden is substantial: $22 billion in nominal debt and credit obligations, including $6.7 billion in debt and $15 billion in loans.
If debt and preferred securities are subtracted, the company's net equity is approximately $34 billion. In my view, this indicator reflects the real state of affairs. The drop in the ranking coincided with pressure on the stock: at the time of data capture, Strategy's shares were losing about 2.68%, which pushed the company lower on the list.
Comparison with neighbors in the ranking: the contrast is clear
For clarity, it is worth comparing Strategy with Venture Global, which holds a neighboring position. Venture Global has net assets of $10.7 billion and earned $4.8 billion in net profit last year. Its debt is 73% of the value of fixed assets, 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's net assets are $7.7 billion, net profit is $250 million, and the price-to-earnings ratio is 326. However, 55% of Twilio's net assets are goodwill, meaning $5.2 billion out of $9.5 billion in total assets. Excluding goodwill, real net assets shrink to $2.5 billion, and the adjusted price-to-book ratio soars to 13.2.
A similar situation exists with Jabil: excluding goodwill and intangible assets, liabilities exceed assets, despite $1 billion in net profit. These comparisons show that behind similar positions in the ranking are companies with vastly different structures and stability. Strategy, with its massive bitcoin holdings and high debt, proves vulnerable to investor reassessment.
My conclusion: Strategy's decline is not a coincidence but a natural result of market correction. Investors are beginning to question: how much is a company actually worth when its main asset is a volatile cryptocurrency and its debt burden is comparable to its equity? As long as bitcoin rises, the model works, but at the slightest pressure on the digital asset market, Strategy's shares will be under threat. The market appears to be starting to account for this.