Bitcoin News Today: MicroStrategy Stock Drops 3.90% Despite Record Low Fiat Exposure and $74 Billion in Bitcoin Holdings

MicroStrategy’s (MSTR) stock has declined despite the company maintaining what appears to be the lowest fiat exposure in its history, with just 0.07% of its $71 billion treasury held in US dollars. The company revealed this information on August 6, 2025, emphasizing that it now holds only $50 million in cash, while the rest of its assets are allocated to Bitcoin, which currently totals 628,791 coins valued at around $74 billion. This shift underscores the company’s continued commitment to a financial model based on digital assets, diverging significantly from traditional corporate practices [1].

MicroStrategy’s Bitcoin ownership now represents approximately 3% of the total supply, making it the largest public corporate holder of the cryptocurrency. The company has raised capital through debt and convertible notes to fund its ongoing Bitcoin purchases and to support its unconventional financial strategy. Despite these significant holdings and reported financial strength, including an estimated $10 billion in net income for 2025 and $32.60 in earnings per share, MSTR stock has underperformed, dropping 3.90% in the past month and closing at $380.26 [1].

The stock now ranks 96th in market capitalization within the S&P 500, with a price-to-earnings ratio of just 4.7—among the lowest of all S&P 500 firms. This has raised questions among market observers about how investors are valuing the company. Some still perceive MicroStrategy primarily as a software firm, rather than a digital asset holding company, despite its large Bitcoin reserves [1].

Despite the company’s strong financials and Bitcoin exposure, the market remains uncertain about how to price MSTR. Some analysts have pointed to the discrepancy between the company’s earnings and its market value. Tom Lee, a well-known analyst, suggested on social media that if Bitcoin reaches $1 million, MicroStrategy could become the largest company in the stock market [1].

However, this outcome is contingent upon Bitcoin’s long-term performance and a broader shift in how investors view MicroStrategy. For now, the stock continues to face downward pressure, with its low P/E ratio and market cap suggesting that its Bitcoin-based financial model has yet to be fully embraced by the broader market [1].

Source: [1] MSTR Stock Nosedives Despite Unusual Strategy’s Unusual USD Fiat Record (https://coinmarketcap.com/community/articles/689409a5a6cc7553011eb042/)