MicroStrategy’s Bitcoin Premium Vanishes as Long-Term Holders Cash Out | US Crypto News

MicroStrategy's significant Bitcoin premium has officially evaporated, as the company's market capitalization ($64.54 billion) dropped below the value of its Bitcoin reserves ($66.15 billion), a first in years. This event coincides with on-chain data showing long-term Bitcoin holders (LTHs) are increasingly taking profits near the $100,000 level, leading to a sharp decline in LTH supply.

MicroStrategy's strategy relies on aggressive convertible bond financing to acquire BTC without shareholder dilution, but analyst AB Kuai Dong noted that financing momentum is slowing, with the company shifting to less favorable preferred share offerings due to cautious bond buyers. Despite the loss of premium, MicroStrategy still holds a substantial unrealized gain on its 641,692 BTC, purchased at an average cost of $74,085 per coin.

Industry observers, like Fidelity Digital Assets' Chris Kuiper, attribute the LTH profit-taking to Bitcoin's recent lagging performance compared to gold and the S&P, causing veteran holders to secure year-end gains. This situation presents a critical test for MicroStrategy and CEO Michael Saylor regarding their ability to sustain accumulation amid tightening financing options.

(Source：BeInCrypto)