MicroStrategy Faces Increased Balance-Sheet Strain as Bitcoin Falls to $60,000
Beincrypto reports MicroStrategy is under renewed market pressure after Bitcoin slid to $60,000, pushing the company’s crypto treasury further below its average acquisition cost and reigniting concerns about balance-sheet risk. The firm holds approximately 713,500 Bitcoin acquired at an average cost of about $76,000 per coin, leaving holdings roughly 21% below cost and translating into billions in unrealized losses.
Shares fell sharply as the stock’s market valuation moved below the value of its underlying Bitcoin, a key stress signal for the treasury model. Market net asset value has fallen to roughly 0.87x, meaning the stock trades at a discount to its Bitcoin holdings and removing the premium MicroStrategy relied on for accretive equity raises.
The company previously raised about $18.6 billion through equity issuance and currently has long-dated debt and no margin-call mechanisms tied directly to Bitcoin’s spot price at current levels.