Strategy (MSTR), the largest publicly traded company holding Bitcoin is seeing a rapid increase in losses on its vast holdings.
The company currently owns 713,502 BTC at an average acquisition price of $76,052. With spot bitcoin trading at nearly $67,000, that represents an unrealized loss of nearly $6.5 billion, or about 12% of that average cost.
Read more: Michael Saylor’s Bitcoin stack is officially underwater, but here’s why he probably won’t hit the panic button
MSTR shares are down about 13% for the day, making Thursday the biggest one-day decline in nearly a year. The stock is now down 66% year-over-year and almost 80% from the record high reached shortly after Donald Trump’s election victory in November 2024.
Despite this massive decline, 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) above one – it is currently around 1.09. This suggests that Michael Saylor and his team have the ability to continue to issue common stock with which to purchase additional bitcoins, without the move having a dilutive effect on shareholders.
The company reports its fourth-quarter results after the bell Thursday evening. No surprises are expected in the results, but investors will surely be interested to see what Saylor has to say, given the current market panic.
Meanwhile, STRC, Strategy’s perpetual preferred stock instrument, marketed as a high-yielding, high-credit money market-type product, is trading around $95, below its $100 face value. If STRC fails to return to its breakeven level 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% at $86 and would also likely require a dividend increase to return to par. Strive’s common stock, ASST, is down about 11% on the day, trading near $0.52 per share.
