MicroStrategy Bitcoin Bet Loses $14.5B as mNAV Falls Below 1
MSTR•MicroStrategy holds 847,363 Bitcoin bought at an average $75,651, a $64.1 billion investment now valued around $50.7 billion, resulting in a $14.46 billion unrealized loss and $12.54 billion net loss in early 2026. Its Market-to-NAV ratio fell to 0.99, marking the first time shares trade below Bitcoin value and hindering capital raises.
1. Bitcoin Holdings and Fair-Value Losses
MicroStrategy held 847,363 BTC purchased for $64.1 billion at an average cost of $75,651 per coin. A new accounting standard requiring quarterly fair-value adjustments produced a $14.46 billion unrealized loss and led to a $12.54 billion net loss in early 2026.
2. Market-to-NAV Dips Below 1
The company’s Market-to-Net Asset Value ratio dropped to 0.99, the first time shares have traded below the underlying value of its Bitcoin holdings. This milestone breaks the premium that funded its Bitcoin-buying model and makes new equity issuances dilutive.
3. Capital Structure and Dividend Coverage
Strategy holds $1.4 billion in USD reserves against $1.71 billion in annual dividends, covering only 9.8 months of payments if Bitcoin remains unsold. The balance sheet also carries $6.75 billion of debt at 11% net leverage and $15.5 billion of preferred securities, highlighting potential liquidity strain.
