MicroStrategy Faces $13 Billion Bitcoin Paper Loss as Preferred Stock Falls 25%
MSTR•MicroStrategy holds 847,363 Bitcoin at an average cost of $75,500, driving a $13 billion unrealized loss as BTC trades near $60,000 and its STRC preferred stock plunges 25% from par. The company has $1.4 billion in cash reserves against $1.2 billion in annual dividend obligations and faces a securities investigation.
1. Bitcoin Holdings and Unrealized Loss
MicroStrategy holds 847,363 Bitcoin at an average acquisition cost of $75,500 per coin, resulting in a roughly $13 billion unrealized loss as market prices hover near $60,000.
2. Preferred Stock Volatility
The company’s dividend-paying STRC preferred shares have plunged about 25% from their engineered par level, trading near $70 after issuing over $10 billion of preferred since last year.
3. Cash Reserves and Dividend Obligations
With $1.4 billion in cash reserves against approximately $1.2 billion in annual dividend costs, the firm’s capital cushion covers just over one year of payouts at current rates.
4. Securities Investigation and Capital Structure Risks
A securities probe examines whether executives made misleading statements across multiple securities, heightening scrutiny on corporate disclosures and the firm’s ability to finance future Bitcoin purchases.
