Strategy company's Bitcoin premium collapses, 'Bitcoin expansion strategy' may be for
Cryptocurrency analyst Miles Deutscher stated in an article on X platform that, Strategy The premium of the company's market value relative to its Bitcoin holdings has decreased from 3.4 in November 2024 to 1.6 in February 2025. This decline indicates that the company's capital for further purchases of Bitcoin may be limited, forcing the company to slow down its aggressive Bitcoin acquisition strategy.
Miles Deutscher The shared chart shows that the market value premium of micro strategies (i.e. the multiple relationship between a company's market value and its Bitcoin holdings) has significantly decreased. The premium has dropped from a high of 3.4 in November last year to the current 1.6, reflecting a weakened market confidence in the valuation of micro strategies relative to their Bitcoin assets.
According to previous reports by Zombiet, as of February 24, 2025, Strategy The holding of Bitcoin has reached about 500000 bitcoins, but with the volatility of the Bitcoin market and changes in the company's capital structure, the shrinking premium may limit its further investment.
Strategy The main way to raise funds to purchase Bitcoin is through issuing convertible bonds and stocks, making it a benchmark for companies to adopt cryptocurrency. However, Miles Deutscher pointed out that the decrease in premium means that Strategy will find it increasingly difficult to raise funds. If the premium remains below 2, the company may need to adjust its aggressive "Bitcoin expansion strategy" or consider selling other assets to maintain investment momentum.
