According to data from SaylorTracker, MicroStrategy shares are currently trading at a net asset value (NAV) of 1.86x. Recently, MicroStrategy (MSTR) issued a redemption notice for its 2027 convertible senior note tranche, which is valued at $1.05 billion. They will also settle all conversion requests for this note offering.
In their announcement on January 24, they mentioned that note-holders have until February 24 to either redeem their securities at 100% of the principal amount or convert each $1,000 block of notes into Class A MicroStrategy stock at about $142 per share. This news comes amid discussions about a potential tax bill on $19 billion in unrealized capital gains. This tax is related to the Corporate Alternative Minimum Tax outlined in the Inflation Reduction Act of 2022.
The announcement about the redemption notice has sparked mixed reactions from market participants. Many are engaged in debates about unrealized capital gains taxes on digital assets.
Digital assets are particularly sensitive to these taxes due to the high volatility of the crypto markets. Taxing unrealized capital gains can discourage investment. This could create challenges for companies like MicroStrategy that have adopted a Bitcoin treasury strategy to maintain their purchasing power.
On January 2, Coinbase and MicroStrategy sent a letter to the US Internal Revenue Service (IRS), opposing the Corporate Alternative Minimum Tax. The letter stated, “The unforeseen combination of CAMT and a newly promulgated accounting standard are creating unjust and unintended tax consequences.”
As of January 2025, MicroStrategy's Bitcoin (BTC) holdings have surpassed 450,000 Bitcoin, making it the largest corporate holder of this asset in the world. According to SaylorTracker, MicroStrategy currently holds 461,000 BTC, valued at around $49 billion. This represents an increase of nearly 68% on their investment.
On January 21, the company made its most recent Bitcoin purchase, adding 11,000 BTC to its balance sheet. This is the largest acquisition in 2025 so far. David Krause, a finance professor at Marquette University, recently pointed out that Saylor’s Bitcoin acquisition strategy could potentially erode shareholder equity. He warned that sudden drops in Bitcoin’s price could compromise MicroStrategy’s ability to repay creditors and might even lead to bankruptcy.