4 Reasons Why MicroStrategy Stock Trades at a Premium To Bitcoin NAV

Key Insights:

• MicroStrategy stock is in focus amid discussions over the firm using debt to amplify Bitcoin exposure up to four times.
• Active options market boosts trading and investor interest, which has helped improve MSTR stock outlook.
• Index fund inclusion creates steady share demand that is absent in Bitcoin.

In his latest post on X, Michael Saylor mentioned why MicroStrategy stock is trading well above the value of its Bitcoin holdings.

He pointed to leverage, options trading, index fund flows, and easy access for large investors as the main factors behind the premium.

Leverage Increases Bitcoin Holdings

The MicroStrategy stock price has often been rated higher than the value of its Bitcoin per share.

In his post on X, Michael Saylor said one reason is the use of debt to buy more Bitcoin.

The company has used convertible bonds and other borrowing models to increase its Bitcoin position by two to four times compared with its equity.

As of August 2025, MicroStrategy owned 628,946 Bitcoins. The total cost of buying these coins was $46.10 billion, with an average price of $73,288 for each Bitcoin.

However, he implied that Spot Bitcoin ETFs and owning Bitcoin directly do not use this kind of leverage.

Basically, this difference means the company’s performance can be more sensitive to changes in the Bitcoin price in the long run.

Interestingly, this can support a higher MSTR stock price relative to the value of its BTC holdings.

Active Options Trading Advantage

As he said in his post on X, another factor is the large and active market for MicroStrategy stock options.

According to Saylor’s figures, open interest in its options market is more than $100 billion. This gives investors different ways to take positions on the stock beyond buying or selling shares.

Meanwhile, spot Bitcoin ETFs have smaller options markets, around $30 billion in open interest.

Bitcoin itself is mainly traded through CME futures, which account for about $20 billion.

This is why the broader options market for MicroStrategy stock can lead to more trading activity, which may help maintain its premium.

Index Fund Buying MicroStrategy Stock

MicroStrategy is included in several major stock indexes, such as the NASDAQ 100, MSCI, and Russell 1000.

It is worth noting that funds that track these indexes automatically buy shares, creating a steady source of demand.

Neither spot Bitcoin ETFs nor Bitcoin itself are part of these equity indexes, so they do not receive the same type of passive capital inflows.

Large index funds can hold billions of dollars in assets, and their buying activities can help keep MicroStrategy’s stock price higher than the value of its Bitcoin.

Large-Scale Investor Access to Bitcoin

Institutional investors like hedge funds and pension funds often choose regulated investments.

MicroStrategy sells shares and bonds, giving these investors an easier way to get exposure to Bitcoin through the company.

Saylor’s post noted that the equity market is valued at about $35 trillion and the credit market at about $60 trillion.

By comparison, spot Bitcoin ETFs have access to about $700 billion in private capital, while Bitcoin itself has less than $150 billion.

The larger pool of potential investors for MicroStrategy stock can support stronger demand for its shares.

Mara Holdings as a Comparison

After Saylor’s comments, some analysts compared MicroStrategy to other Bitcoin-linked companies.

Mara Holdings, a Bitcoin mining firm, has a market value close to its Bitcoin holdings.

The company mines Bitcoin at a cost between $34,000 and $40,000 and keeps the coins it produces.

At a Bitcoin price of $150,000, some analysts said Mara Holdings stock could reach $30, giving investors leveraged exposure without paying the same premium as MicroStrategy.

If anything is clear, this comparison shows that MicroStrategy has structural advantages that can justify its premium.

Still, market participants believe that there are other ways for investors to gain Bitcoin exposure through equities.