Strategy has fallen sharply in the ranking of the largest publicly traded companies in the United States. According to Jeff Walton, Chief Risk Officer at Strive, the company dropped to 310th place by market capitalization on the 586th day of his tracking period.
Over the past 27 trading sessions, Strategy has lost 77 positions in the ranking.
Walton noted that the company has once again slipped into the lower half of the 500 largest US-listed companies. According to CompaniesMarketCap, Strategy currently has a market capitalization of approximately $33.39 billion, while its shares trade near $92.10.
What Is Behind Strategy’s Drop in the Rankings?
To illustrate the scale of the decline, Walton examined Strategy’s asset and liability structure.
According to his calculations, the company holds approximately $56 billion in assets, including around $53 billion worth of Bitcoin and $3 billion in cash.
Strategy, which trades under the ticker MSTR, is currently ranked 310th among US companies by market capitalization, with a valuation of approximately $33.39 billion.
However, the company also carries substantial financial obligations. Walton estimated that Strategy has roughly $22 billion in debt and preferred securities, including $6.7 billion in conventional debt and approximately $15 billion in preferred stock obligations.
After deducting these liabilities, the company’s estimated net asset value stands at approximately $34 billion. According to Walton, this figure provides a clearer picture of Strategy’s underlying financial position.
The decline in the rankings has coincided with continued pressure on the company’s shares. According to CompaniesMarketCap, Strategy stock fell by approximately 2.68% at one point, pushing the company further down the list.
The move is notable given the size of Strategy’s asset base. Despite holding one of the world’s largest corporate Bitcoin reserves, the company remains vulnerable to shifts in investor sentiment and changes in the premium attached to its BTC holdings.
How Strategy Compares With Other Companies
To provide additional context, Walton compared Strategy with several similarly ranked companies that have very different financial structures.
One example was Venture Global, which reportedly holds approximately $10.7 billion in net assets and generated $4.8 billion in net income last year.
According to Walton, Venture Global’s debt is equal to roughly 73% of its fixed assets, while the company trades at a price-to-book ratio of approximately 3.1. Its shares gained around 9.15% on the day of the comparison, according to CompaniesMarketCap.
Walton also examined Twilio. The company reportedly holds approximately $7.7 billion in net assets and generated around $250 million in net income, while trading at a price-to-earnings ratio of roughly 326.
However, Walton pointed out that a large portion of Twilio’s balance sheet consists of goodwill. The company reports approximately $5.29 billion in goodwill against total assets of around $9.58 billion.
Goodwill represents the premium a company pays above the fair value of acquired assets. Excluding this amount, Twilio would have only around $2.5 billion in tangible net assets, pushing its adjusted price-to-book ratio to approximately 13.2.
Walton identified a similar situation at Jabil. According to his analysis, the company has more liabilities than tangible assets after excluding goodwill and other intangible assets, despite generating approximately $1 billion in net income.
The comparisons highlight how companies with similar market-cap rankings can have significantly different balance sheets, profitability levels and asset structures.
