MicroStrategy's Reserve Capital Exceeds Most S&P 500 Financial Firms Except Berkshire
MicroStrategy (MSTR) claims its reserve capital exceeds that of all but one financial firm in the S&P 500, with Berkshire Hathaway being the exception. The company holds approximately $72.3 billion in reserves, including $65.2 billion from Bitcoin and $6.7 billion in dollar assets. CEO Phong Le stated there is zero net leverage as of August 30, supported by matching debt levels to cash holdings. The claim relies on a custom metric that excludes senior claims like preferred stock when calculating reserve capital ratios. This method inflates the ratio from around 3.4 times to over 10 times if preferred stock is excluded. While MicroStrategy's financials appear strong, its stock (MSTR) fell by about 2.1% on Wednesday despite Bitcoin remaining relatively stable. Berkshire Hathaway reported $365.5 billion in cash and Treasury bills as of June 30, a verifiable figure unlike the rankings used to compare with MicroStrategy.
Tickers: $MSTR
Topics: Bitcoin Holdings MicroStrategy Strategy Reserve Capital S&P 500 Comparison