Strategy falls out of top 250 US companies as market cap drops to $40B
Strategy Inc, the company formerly known as MicroStrategy, has slipped out of the top 250 US companies by market capitalization. The firm’s valuation has cratered to approximately $39.92 billion, a jarring fall from grace for a company that once commanded a market cap north of $100 billion.
Strategy holds roughly 846,842 Bitcoin, making it the single largest corporate holder of the asset on the planet. And yet the market is valuing the company below the worth of its own Bitcoin stash.
The numbers tell a brutal story
At Bitcoin’s current price near $63,000, Strategy’s Bitcoin treasury is worth over $53 billion. The company’s market cap sits around $40 billion. Investors are currently pricing Strategy at a discount to the Bitcoin it actually owns.
The stock has plummeted roughly 62% from its peak in June 2025.
Strategy now holds the dubious distinction of being the most heavily shorted stock in the US. About 14% of its market cap is currently shorted.
The company acquired its massive Bitcoin position at an average cost basis of approximately $75,500 to $76,000 per coin. With Bitcoin trading around $63,000, that puts the entire treasury underwater on a cost basis.
From software company to Bitcoin proxy
Strategy’s transformation has been one of the most dramatic corporate pivots in recent memory. The company rebranded from MicroStrategy Incorporated to Strategy Inc in August 2025, officially shedding any pretense that enterprise software was still the main event.
Michael Saylor has been the architect and evangelist of this approach since 2020, when the company first started converting its balance sheet into Bitcoin.
For a while, the market rewarded this conviction handsomely. Strategy’s stock traded at significant premiums to its net asset value, essentially giving investors a leveraged bet on Bitcoin through a publicly traded equity. That premium has now evaporated entirely, flipping into a discount.
The stock took another 6% hit in early June 2026.
What this means for investors
The discount-to-NAV situation creates an interesting puzzle. On paper, buying Strategy stock at $40 billion gets you exposure to $53 billion worth of Bitcoin. That gap theoretically represents a buying opportunity for anyone who believes Bitcoin will recover above Strategy’s cost basis and that the company won’t be forced into any kind of liquidation or restructuring.
A 14% short interest relative to market cap is enormous by any standard. Those positions reflect a bet that Bitcoin could fall further, that the discount to NAV could widen, or that the company’s debt structure and ongoing Bitcoin acquisition strategy could become untenable in a prolonged downturn.
The company’s global ranking has slid to around 651st, a far cry from its position among America’s elite corporations just a year ago.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
The AI boom may follow the path of the 19th-century railway bubble, and builders may not be the ultimate winners
Goldman Sachs analyst Bobby Molavi compared the current situation to the 19th-century British railway mania: 500 companies spent more than the nation's annual income building 8,000 miles of railway, with most early investors losing out, while the real beneficiaries were the later "passengers." He pointed out that the current AI craze is driven by both debt and momentum, and that the S&P 500’s forward P/E ratio of 18x is only "a bit cheaper." Whether the builders can retain value is uncertain, and history does not offer an optimistic answer.
If Anthropic's IPO goes smoothly and the stock price rises next week, then everything remains the same for AI. Otherwise, some companies will go bankrupt.
The shrinking valuations of two major giants have triggered a chain reaction—investors are adopting more conservative revenue multiples for AI startups and are directly halting high-valuation financing for companies with zero revenue. Multiple venture capital firms have advised their portfolio companies to lower valuation expectations and to quickly build up cash reserves. Market participants warn that the outcome of Anthropic’s IPO will be a barometer for the industry: if successful, the boom will continue; if it fails, some companies may face elimination.
After the Brazilian election, political discount deepens; Morgan Stanley remains bullish on Petrobras (PBR.US), focusing on fuel pricing and dividends
Morgan Stanley still maintains its most optimistic "Overweight" rating, but has lowered its year-end 2027 target price from $31 to $25.
Corning (GLW.US) receives initial "Buy" rating from Jefferies! AI factories driving a fiber optic rush, with a potential global supply gap of up to 30%
For Corning, the recent profit growth mainly comes from the expansion of AI clusters. As the number of optical links crossing cabinets and campuses increases, customers need to deploy more optical fibers within limited conduit and cabinet space, thus driving demand for high-density optical cables and connection systems.
Crypto prices
More
