TLDR
- Strategy (MSTR) has lost nearly 35% over the past seven days, its worst stretch since November 2022.
- Bitcoin fell as low as $58,065 on Thursday, its lowest intraday level since September 2024.
- Strategy holds roughly 844,000 BTC acquired at an average price of ~$75,600, putting unrealized losses above $13 billion.
- Its Stretch preferred stock (STRC) hit a record low of $73.62, limiting the company’s ability to fund further Bitcoin purchases.
- Strategy’s stock has dropped more than 81% from its July 2025 high of $457.22.
Strategy (MSTR) stock was heading for another down day on Friday as Bitcoin continued to trade below $60,000, deepening what is already the company’s worst losing streak in years.
Over the past seven trading days, MSTR has lost nearly 35%. That’s the stock’s worst seven-day performance since the period ending November 16, 2022, according to Dow Jones Market Data. If the losing streak continues, it will be the longest consecutive decline since December 2022.
The stock was last trading around $85.50 and has now fallen more than 81% from its July 2025 high of $457.22.
Bitcoin Losses Mount on the Balance Sheet
Strategy owns approximately 844,000 BTC, acquired at an average cost of about $75,600 per coin. With Bitcoin now below $60,000, the company is sitting on an unrealized mark-to-market loss of more than $13 billion.
Under fair-value accounting rules, those paper losses flow directly through the income statement, meaning Strategy could report a large quarterly loss when it next reports earnings.
To put the scale in perspective, that $13 billion figure exceeds the entire market cap of Dogecoin, currently estimated at around $12.97 billion.
Bitcoin itself fell to an intraday low of $58,065 on Thursday, a level not seen since September 2024. The broader tech selloff has been pulling risk assets lower, and Bitcoin has not been immune.
The pressure intensified after Apple raised prices on some products Thursday, citing higher memory and storage chip costs. That move stoked concerns about the sustainability of the AI spending cycle and sent investors further away from risk assets.
Preferred Stock Slump Cuts Off the Funding Tap
A separate but related problem is squeezing Strategy from another angle. The company has relied heavily on its Stretch preferred stock (STRC) to raise capital for Bitcoin purchases. The model works when STRC trades near or above its $100 par value — Strategy issues new preferred stock, collects the cash, and buys more Bitcoin.
But STRC hit a record low of $73.62 this week. At that steep a discount, raising fresh capital through preferred issuance becomes costly and impractical.
It also creates pressure on the dividend. STRC already carries an 11.5% annual dividend. The further it trades below par, the harder it becomes to sustain that payout without diluting common stockholders.
Strategy disclosed earlier this week that it used proceeds from common stock sales to cover preferred dividend obligations and add to its cash reserves. It’s a workable fix, but it comes at the cost of diluting existing common shareholders — a trade-off the market has not taken kindly to.
Long-time Bitcoin critic Peter Schiff weighed in on X this week, arguing that MSTR could soon trade at a 40% discount to the underlying value of its Bitcoin holdings.
“The best way to create shareholder value would be to sell Bitcoin to buy back shares until the discount is closed,” Schiff wrote.
Strategy’s stock has now dropped to its lowest level in 28 months.
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