Strategy (MSTR), the world’s largest publicly traded bitcoin-owning company is seeing rapidly mounting losses on its vast holdings.
The company currently holds 713,502 BTC at an average purchase price of $76,052. With bitcoin spot trading near $67,000, this represents an unrealized loss of nearly $6.5 billion, or about 12% relative to that average cost basis.
Read more: Michael Saylor’s bitcoin stack is officially underwater, but here’s why it probably won’t hit the panic button
MSTR stock is down about 13% on the day, making Thursday the biggest single-day drop in nearly a year. The stock is now down 66% year over year and nearly 80% from an all-time high reached shortly after Donald Trump’s election victory in November 2024.
Despite that massive drawdown, Strategy continues to trade at a modest premium to the value of bitcoin on its balance sheet, known in the trade as mNAV (multiple of net asset value) greater than one: it is currently around 1.09. This suggests that Michael Saylor and his team have the ability to continue issuing common shares with which to purchase additional bitcoins, without the move diluting shareholders.
The company will report its fourth-quarter earnings after the bell Thursday night. No surprises are expected in the results, but investors will surely be interested to see what Saylor has to say, given the current panic in the market.
Meanwhile, STRC, Strategy’s perpetual preferred equity instrument, marketed as a high-yield, high-credit money market-style product, is trading around $95, down from its face value of $100. If STRC fails to recover to par by the end of the month, the dividend rate is expected to increase by another 25 basis points to 11.5%.
The only other comparable perpetual preferred stock currently trading is Strive’s SATA (ASST), which is down about 4% to $86 and would likely also require a dividend increase to return to par. Strive’s common stock, ASST, is down about 11% on the day, trading around $0.52 per share.
