Key Highlights
- Strategy (MSTR) has plummeted nearly 35% in the last seven trading days, marking its steepest decline since November 2022.
- Bitcoin dropped to an intraday low of $58,065 on Thursday, reaching its weakest level since September 2024.
- The company holds approximately 844,000 BTC purchased at an average cost of roughly $75,600, resulting in unrealized losses exceeding $13 billion.
- The company’s Stretch preferred shares (STRC) plunged to an all-time low of $73.62, constraining its capacity to finance additional Bitcoin acquisitions.
- MSTR shares have collapsed more than 81% from their July 2025 peak of $457.22.
Strategy (MSTR) stock was on track for yet another negative session on Friday as Bitcoin remained trapped below the $60,000 threshold, amplifying what has become the firm’s most severe downturn in recent memory.
Across the last seven trading sessions, MSTR has shed approximately 35% of its value. This represents the equity’s weakest seven-day stretch since the period concluding November 16, 2022, based on data from Dow Jones Market Data. Should the decline persist, it would mark the longest consecutive losing run since December 2022.
Shares were recently changing hands near $85.50, reflecting a staggering decline of over 81% from the July 2025 peak of $457.22.
Mounting Unrealized Losses on Bitcoin Holdings
Strategy maintains a position of roughly 844,000 BTC, obtained at an average entry price of approximately $75,600 per token. With Bitcoin currently trading beneath the $60,000 level, the firm faces unrealized mark-to-market losses surpassing $13 billion.
According to fair-value accounting standards, these paper losses are recorded directly on the income statement, which means Strategy may reveal substantial quarterly losses in its upcoming earnings release.
For context, the $13 billion unrealized loss figure is larger than Dogecoin’s complete market capitalization, which currently stands at roughly $12.97 billion.
Bitcoin touched an intraday bottom of $58,065 on Thursday, a price point last witnessed in September 2024. The widespread technology sector downturn has been dragging risk-oriented assets lower, with Bitcoin caught in the crossfire.
The selling pressure escalated following Apple’s announcement Thursday of price increases on certain products, attributed to elevated memory and storage chip expenses. This development sparked anxieties about whether the artificial intelligence investment boom can be sustained, prompting investors to retreat further from speculative assets.
Preferred Stock Collapse Threatens Capital Raising Ability
A distinct yet interconnected challenge is applying pressure to Strategy from an additional direction. The organization has leaned extensively on its Stretch preferred shares (STRC) as a mechanism to generate funds for Bitcoin purchases. This approach functions effectively when STRC trades at or near its $100 par value — Strategy releases new preferred shares, receives the proceeds, and acquires additional Bitcoin.
However, STRC plummeted to an unprecedented low of $73.62 this week. At such a substantial discount, generating new capital through preferred share issuance becomes economically inefficient and unfeasible.
This situation also creates strain on dividend obligations. STRC already features an 11.5% annual dividend yield. The deeper it trades below par value, the more challenging it becomes to maintain that distribution without diluting common equity holders.
Strategy revealed earlier this week that it utilized proceeds from common share sales to fulfill preferred dividend requirements and bolster its cash position. While this represents a functional solution, it arrives at the expense of diluting current common shareholders — a compromise that the market has responded to negatively.
Prolific Bitcoin skeptic Peter Schiff commented on X this week, suggesting that MSTR could imminently trade at a 40% discount relative to the market value of its Bitcoin portfolio.
“The optimal approach to generate shareholder value would involve selling Bitcoin to repurchase shares until the discount disappears,” Schiff stated.
Strategy’s equity has now fallen to its lowest valuation in 28 months.
