Ahead of its fourth-quarter earnings report tonight, Strategy (MSTR) shares fell roughly 13% as bitcoin slid back toward $68,000.
The world’s largest publicly traded corporate bitcoin holder is seeing mounting unrealized losses. MSTR owns 713,502 BTC at an average purchase price of $76,052. With spot bitcoin near $67,000, the position carries an unrealized loss of about $6.5 billion, or roughly 12% relative to its cost basis.
Thursday’s decline marks the stock’s biggest single-day drop in nearly a year. MSTR is now down 66% year-over-year and nearly 80% from its post-election high following Donald Trump’s November 2024 victory.
Despite the steep drawdown, MSTR continues to trade at a modest premium to the net value of its bitcoin holdings. Its multiple of net asset value (mNAV) stands at around 1.09, indicating the company could still issue common stock to acquire additional bitcoin without materially diluting shareholders.
Investors will be watching CEO Michael Saylor closely during Thursday’s earnings call, though no major surprises are expected in the report.
Meanwhile, Strategy’s perpetual preferred equity, STRC — marketed as a high-yield, money-market-style product — is trading near $95, below its $100 par value. If STRC does not recover to par by month-end, the dividend rate is expected to rise 25 basis points to 11.5%.
By comparison, Strive’s (ASST) perpetual preferred, SATA, is down roughly 4% at $86 and would likely require a divid
