MicroStrategy’s net asset value (NAV) premium has reached its highest point since February 2021, now at 2.5 times the value of its Bitcoin holdings.
The NAV premium measures how much MicroStrategy’s market value exceeds the worth of its Bitcoin. Right now, the company is valued at about $37.14 billion, while its 252,220 Bitcoin holdings are worth $15.1 billion.
This premium is also seen in its MSTR price, where its ratio to Bitcoin price is currently 0.0030, the highest since it began buying Bitcoin in 2020. While MSTR pumped 11% to a 25-year high, Bitcoin only pumped 3%.
Ever since the CEO, Micheal Saylor changed the focus of the company to Bitcoin in 2020, it has become the largest public company holder of the cryptocurrency.
The company has been actively increasing its Bitcoin stash by raising funds through stock sales and convertible debt. As a result, the company’s Bitcoin per share has grown to 0.0012, even though there’s been some dilution from issuing more shares.
MSTR has also outperformed Bitcoin throughout 2024, gaining over 240% since the launch of Bitcoin spot exchange-traded funds (ETFs) in January.
This increase is about eight times better than Bitcoin, which has dropped 16% since its peak in March. The company also introduced a performance measure called “Bitcoin Yield,” which tracks the change in Bitcoin holdings compared to its outstanding shares.
In the second quarter of 2024, this yield increased to 5.1%, up from 4.4% in the previous quarter, indicating that it is growing its Bitcoin holdings faster than it is issuing new shares.
The company recently added 18,300 bitcoins to its holding between August and September, its largest purchase since 2021.
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