Ahead of its fourth-quarter earnings report tonight, Strategy (MSTR) shares are plunging again, falling roughly 13% as bitcoin retreats to around $68,000.
The world’s largest publicly traded corporate holder of bitcoin is seeing unrealized losses mount on its vast holdings. MSTR currently owns 713,502 BTC at an average acquisition price of $76,052. With spot bitcoin trading near $67,000, this translates to an unrealized loss of nearly $6.5 billion, or roughly 12% relative to its average cost basis.
Thursday marks the largest single-day decline for MSTR in nearly a year, pushing the stock down 66% year-over-year and nearly 80% from its post-election peak following Donald Trump’s November 2024 victory.
Despite the drawdown, MSTR continues to trade at a modest premium to the value of its bitcoin holdings. Its multiple of net asset value (mNAV) sits at about 1.09, indicating that the company could continue issuing common stock to buy additional bitcoin without diluting existing shareholders.
Investors will be closely watching Thursday’s earnings report for any commentary from CEO Michael Saylor amid the ongoing market volatility, though no surprises are widely expected in the results.
Meanwhile, Strategy’s perpetual preferred equity instrument, STRC — marketed as a high-yield, money-market-style product — is trading around $95, below its $100 par value. If STRC fails to return to par by the end of the month, the dividend rate is expected to increase by 25 basis points to 11.5%.
By comparison, Strive’s (ASST) perpetual preferred, SATA, is down roughly 4% at $86 and would likely also see a dividend bump to return to par. Strive’s common stock, ASST, fell about 11% on the day, trading near $0.52 per share.
