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.