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Let’s have some coffee. This is worth sitting through. The once-solid link between MicroStrategy’s stock price and Bitcoin’s wealth is cracking. The company that turned corporate balance sheets into virtual currency vaults is now facing market valuation as years of bitcoin premiums disappear. The timing could not be more symbolic.
Today’s crypto news: MicroStrategy’s Bitcoin premium finally breaks
MicroStrategy’s famous Bitcoin premium, a key symbol of institutional trust in the crypto market, has officially disappeared. This comes five months after the indicator was under stress as reported in the US Crypto News publication in mid-May.
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The company’s market capitalization ($64.54 billion at the time of writing) is lower than its Bitcoin holdings ($66.15 billion), making it the first company in recent years to become the world’s largest Bitcoin holding company.
“Wait, what? MicroStrategy’s total market cap is already less than the value of the Bitcoin it owns!? …Now MicroStrategy’s premium market is truly over,” wrote analyst AB Kuai Dong.
Floating profits remain strong for now as funding momentum slows
Despite the loss of premium, MicroStrategy’s balance sheet remains deeply tied to Bitcoin’s performance. The company holds 641,692 BTC at an average cost of $74,085 per coin. In other words, even if Bitcoin were to return to $102,918, it would still enjoy an unrealized gain of approximately 39.10%, Dong pointed out in a follow-up post.
MicroStrategy has built a huge position in Bitcoin through a unique and aggressive convertible debt financing model.
Unlike Tom Lee’s BitMine Immersion, which we previously covered in US Crypto News, MicroStrategy allows the company to acquire Bitcoin without diluting shareholders.
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Investors who purchase these bonds typically accept a lower yield in exchange for the possibility of converting them into equity at a later date. If MicroStrategy’s stock price and Bitcoin price both rise, this becomes an attractive proposition.
“…Once MSTR receives funds, it will go directly to buy BTC. If BTC rises in the future and stock prices rise accordingly, investors will convert bonds into stocks and earn more money. In this way, the debt issued by Strategy will disappear into thin air,” Dong explained.
However, Dong warned that MicroStrategy’s fundraising momentum is starting to wane as the company’s stock price comes under pressure and bond buyers become more cautious.
“Will anyone buy new bond issuances even after stock prices have slumped? The amount of Bitcoin they are adding each week is clearly trending down, indicating some lack of fundraising momentum,” he posed.
Market participants have also confirmed this slowdown. Cryptocurrency commentator Sun Xinjin pointed out that MicroStrategy has not issued any new convertible bonds since February 2025, and has instead moved to a preferred stock offering (STR series) starting in September 2025.
These preferred stocks carry significantly higher interest rates, suggesting investors are looking for stronger incentives amid tight market conditions. Dong confirmed that the latest fundraising efforts in Europe follow this new structure.
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Long-term Bitcoin holders will benefit
The move comes as on-chain data shows that long-term Bitcoin holders (LTH) are increasingly taking profits around $100,000.
Analysis firm Glassnode reported that LTH supply is rapidly decreasing, with net position change dropping sharply into negative territory, suggesting an acceleration in long-term distribution.
Chris Kuiper, vice president of research at Fidelity Digital Assets, echoed this trend, saying the recent price slump has fatigued many veteran holders.
“Bitcoin’s performance has been lagging behind gold and even the S&P lately, and people are getting tired…Long-term holders are looking to make year-end taxes and position changes, thinking they’re done with the gains they’ve already made,” Kuiper explained.
For MicroStrategy and its CEO Michael Saylor, this moment is a significant test. Although the company remains profitable on paper, it faces tightening funding options and changing investor sentiment.
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As bond markets cool and Bitcoin holders book profits, the company’s ability to maintain its accumulation strategy may depend on whether Bitcoin’s next high is achieved by 2026.
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