Strategy’s bitcoin position is moving deeper into the red. The company, the largest publicly traded corporate holder of bitcoin, now owns 713,502 BTC acquired at an average price of $76,052. With spot bitcoin trading near $67,000, that leaves Strategy with an unrealized loss of nearly $6.5 billion, or about 12% below its average cost basis.
MSTR posts its sharpest one-day drop in nearly a year
MSTR shares fell about 13% on the day, marking the stock’s biggest single-session decline in almost one year. On a longer view, the stock is down 66% year over year and nearly 80% below the record high reached shortly after Donald Trump’s election victory in November 2024. The move highlights how closely the company���s equity is tied to swings in bitcoin and to investor appetite for its balance-sheet strategy.
Premium to bitcoin holdings remains intact
Even after the sell-off, Strategy continues to trade at a slight premium to the value of the bitcoin on its balance sheet. In market terms, its mNAV, or multiple of net asset value, remains above 1 and currently sits around 1.09. That matters because it suggests Michael Saylor and his team still have room to issue common shares to buy additional bitcoin without making the transaction dilutive to existing shareholders at current valuation levels.
The company is scheduled to report fourth-quarter earnings after the bell on Thursday. Few surprises are expected in the numbers themselves. Attention is likely to center on Saylor’s comments as traders assess the latest sell-off and the pressure now visible across Strategy-linked securities.
STRC trades below par as dividend step-up nears
Strategy’s perpetual preferred equity instrument, STRC, is trading around $95, below its $100 par value. The security has been marketed as a high-yield, high-credit, money-market-style product. If it does not recover to par by the end of the month, its dividend rate is expected to increase by another 25 basis points to 11.5%.
The only other comparable perpetual preferred currently trading is Strive’s SATA. That instrument is down roughly 4% at $86 and would also likely need a higher dividend to move back to par. Strive’s common stock, ASST, fell about 11% on the day to around $0.52 per share.