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MicroStrategy suffered a disastrous start to December as its market capitalization briefly fell below the net value of its bitcoin assets, exposing the company to renewed concerns about leverage, liquidity and investor confidence.
Shares collapsed Monday morning, falling to $156, pushing MicroStrategy’s valuation to $45 billion.
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MicroStrategy’s Wall Street Nightmare?
The company currently has 650,000 BTC valued at around $55.2 billion, making this drop a rare moment as Wall Street has valued the business at a lower price than its underlying assets.
However, MicroStrategy also carries $8.2 billion in debt. After deducting those debts andAdding to the company’s cash reserves of $1.4 billionThe company still has about $48.4 billion in net worth in Bitcoin.
That means the stock is $3.4 billion below its Bitcoin-adjusted value at the session low.
The shock separated the traders. MicroStrategy typically trades at a higher price because the markets are pricing in Michael Saylor’s aggressive strategies in Bitcoin, the future purchase of BTC, and the role of the stock as a regular proxy for Bitcoin.
But the sale is on Monday The high price was forced into one of its tightest ranges In general.
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By midday, the company’s NAV ratio – which measures how much a stock trades above or below Bitcoin’s net asset value – had recovered to 1.16, well below levels previously seen in 2025.
The reading shows that the market is now only worth MicroStrategy 16% above Their Bitcoin holdings, compared to the prizes, have exceeded 50% during the year’s demonstration.
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Critical risk period for MicroStrategy and Bitcoin
The sharp repricing reflects the growing concern of investors. Bitcoin has fallen From $125,000 to $85,500 from October, eliminating tens of billions in paper value from MicroStrategy’s budget.
The decline coincided with tighter liquidity, lower exchange-traded fund flows, and a general reset in risk appetite.
Concerns about Saylor’s long-term strategy were raised again. Critics argue that the company’s debt should be serviced regardless of Bitcoin’s performance, increasing pressure to raise new capital or sell more shares.
Others warn that MicroStrategy’s position is now so large that Saylor cannot reduce risk without… Market destabilization.
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However, the company remains the largest corporate holder of Bitcoin in the world, and its holdings continue to exceed its market value.
The recovery later in the day shows that investors have not abandoned the stock, but rather reevaluating risks more aggressively than ever this year.
MicroStrategy begins December with the narrowest valuation gap in years, signaling a turning point in how markets perceive the company’s leveraged Bitcoin strategy.
Whether this is a temporary panic or the start of a deeper correction depends on the stability of Bitcoin and the next steps of the company.
