Michael Saylor Explains Why Investors Pay More For MSTR Than Its Bitcoin Worth

Microstrategy, now rebranded as Strategy, has seen its stock price (Nasdaq: MSTR) climb above the value of the bitcoin it holds. That gap — known as a premium to its net asset value (NAV) — shows the advantages of owning MSTR shares compared to holding bitcoin directly or through spot exchange-traded products (ETPs).

Good to know

• Strategy holds about 628,946 BTC, making it the largest corporate bitcoin holder.
• MSTR’s NAV measures the per-share value of its bitcoin holdings after liabilities.
• Structural advantages like leverage, passive flows, and institutional access help maintain the premium.

Saylor’s Four Reasons For The Premium

On August 13, executive chairman Michael Saylor explained on X why MSTR trades above its bitcoin NAV.

According to Saylor:

“MSTR trades at a premium to bitcoin NAV due to Credit Amplification, an Options Advantage, Passive Flows, and superior Institutional Access that equity and credit instruments provide compared to commodities.”

These factors work together to give the company flexibility and reach that bitcoin itself cannot match.

Leverage And Market Advantages

The “credit amplification” Saylor refers to comes from the company’s ability to use 2x to 4x leverage on bitcoin through equity financing. In bullish markets, that leverage can boost returns far beyond what is possible with spot bitcoin or spot bitcoin ETPs, which have no such mechanism.

MSTR also benefits from a deeper and more active options market — with over $100 billion in open interest tied to traditional equity options. That compares to roughly $30 billion for spot bitcoin ETPs and about $20 billion for CME bitcoin futures.

Passive Flows And Institutional Reach

Being part of major indices such as the Nasdaq 100, MSCI, and Russell 1000 means MSTR draws in passive investment flows. Bitcoin and its spot-based ETPs don’t receive the same kind of automatic buying from index funds.

Institutional reach is another area where MSTR stands out. Equity markets open doors to around $35 trillion in equity capital and $60 trillion in credit markets. That’s far greater than the roughly $700 billion in private capital available to spot bitcoin ETPs or the less than $150 billion for direct bitcoin holdings.

A Corporate Bitcoin Proxy

Strategy began buying bitcoin in 2020, making it the centerpiece of its corporate treasury strategy. Those purchases are funded through a mix of debt and equity offerings, turning MSTR into a de facto proxy for investors who want bitcoin exposure with additional liquidity and leverage features.

Critics argue the valuation gap between MSTR and its bitcoin holdings is too wide. Supporters counter that the company’s financing capabilities, market access, and investor base justify the premium — especially for those seeking amplified performance rather than pure bitcoin tracking.

In Summary

The four reasons according to Michael Saylor are:

1. Credit Amplification: Strategy leverages bitcoin via equity financing—2x to 4x leverage during bullish times boosts returns in a way direct bitcoin ownership can’t match.
2. Options Advantage: Access to a deeper options market—over $100 billion in open interest—levels up liquidity versus roughly $30 billion in spot BTC ETP options.
3. Passive Flows: As part of indexes like Nasdaq‑100, MSCI, Russell 1000, MSTR attracts automatic investing that bitcoin or its ETPs miss out on.
4. Institutional Access: Equity markets throw open the door to $35 trillion in equity capital and $60 trillion in credit. Compare that to about $700 billion in private capital investing in spot BTC ETPs, or under $150 billion through direct bitcoin channels