🔍 News


  • A tweet from BitcoinTreasuries.NET claims that “Strategy (formerly MicroStrategy) now has a market capitalization greater than that of PayPal.”

  • CryptoSlate reports that during the third quarter of 2025, Strategy (formerly MicroStrategy) recorded US$ 3.89 billion in unrealized gains in Bitcoin, which helped increase its valuation.

  • In Investopedia the transformation of MicroStrategy is well described: it stopped being a software company with “business intelligence” revenue to become an entity whose main strategy is to hold Bitcoin. This transition means that its valuation is closely tied to the price of Bitcoin.

  • In his recent article, Michael Saylor explains why MicroStrategy's (MSTR / Strategy) shares trade at a premium to the 'intrinsic' value of its Bitcoin holdings (and how that premium is expected to justify the leverage and growth).



#bitcoin , #Paypal

⚙️ What it means for its capitalization to exceed that of PayPal


If indeed Strategy's market capitalization is currently greater than PayPal's, it speaks to several things:


✅ Positive factors / reasons why it could happen


  1. Market bet on Bitcoin growth

    Many investors see Strategy as a leveraged way to gain exposure to Bitcoin. They believe that if Bitcoin rises sharply, Strategy's shares will do so with greater momentum.

  2. Unrealized gains / accounting revaluations

    The 'unrealized' gains from Bitcoin can inflate the perceived value of the company's balance sheet, even though those gains are not immediate liquidity. But markets value that revaluation.

  3. Aggressive financing strategies

    Strategy has raised capital (convertible shares, convertible debt) to buy more BTC, which allows its growth (or decline) in Bitcoin to significantly impact the valuation of equity.


#TrumpTariffs

⚠️ Risks / important warnings


That the valuation is greater than PayPal implies high risks. Some things to keep in mind:


  1. Extreme volatility

    If Bitcoin falls, Strategy will suffer more than many 'traditional' companies. Its relationship with Bitcoin is very close.

  2. Dependence on the price of Bitcoin, not on its software operations

    The main operation of the former MicroStrategy (business intelligence) now has much less weight compared to its function as a 'holding of Bitcoin.' Its operating income from the core business may not withstand significant losses in BTC.

  3. Valuation premium (overvaluation)

    The market may be valuing beyond what its assets strictly worth. As reported by Barron’s, MicroStrategy's stock has traded at up to 3 times the value of its BTC holdings!

  4. Leverage / debt risk

    Part of its BTC purchases have been financed with convertible debt and equity issuance. If something goes wrong, it may face financial pressures.

  5. Liquidity of holdings is not immediate

    Although it has a lot of BTC 'on the books,' converting it to cash or using it in critical moments may be more difficult than the valuation suggests.


🎯 Conclusion


  • That Strategy has a greater market capitalization than PayPal is a sign of the confidence that the market is placing in Bitcoin and in the company's aggressive strategy.

  • But that high valuation also incorporates a large dose of future expectation (that Bitcoin rises significantly, that the strategy continues to work, that there are no debt shocks, etc.).

  • It seems somewhat more speculative than solid: it is risky because it relies heavily on everything going well.


$BTC