Strategy (MSTR), the world’s largest publicly traded corporate holder of Bitcoin It is seeing losses on its huge stake increasing rapidly.
The company currently holds 713,502 BTC at an average acquisition price of $76,052. With spot Bitcoin trading near $67,000, this represents an unrealized loss of about $6.5 billion, or about 12% based on that average cost.
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Shares of MSTR fell nearly 13% on the day, marking Thursday’s biggest one-day decline in nearly a year. The stock is now down 66% year-to-date and nearly 80% below the record high reached shortly after Donald Trump’s election victory in November 2024.
Despite that steep decline, the strategy continues to trade at a slight premium to the value of Bitcoin on its balance sheet, known in the trade as a multiple of MNAV (multiplier to net asset value) – it is currently around 1.09. This suggests that Michael Saylor and team have the ability to issue common stock with which to purchase additional Bitcoin, without the move causing a loss to shareholders.
The company reports its fourth-quarter earnings after the bell on Thursday evening. No surprises are expected in the results, but given the current market jitters, investors will certainly be interested to see what Saylor has to say.
Meanwhile, STRC, the strategy’s enduring preferred equity instrument, which is marketed as a high-yield, high-credit, money-market-style product, is trading around $95, below its $100 par value. If STRC fails to break even by month-end, the dividend rate is expected to rise an additional 25 basis points to 11.5%.
The only other comparable perpetual preferred equity currently trading is Strive (ASST) SATA, which is down about 4% at $86 and would also need a dividend increase to return to par. Strive’s common equity, ASST, is down about 11% on the day, trading near $0.52 per share.