MicroStrategy’s Bitcoin Bet Spurs $14.5B Unrealized Loss as mNAV Slips Below 1
MSTR•MicroStrategy’s 847,363 BTC holding, acquired at an average $75,651 cost for $64.1B, triggered a $14.46B quarterly unrealized loss with net loss of $12.54B as Bitcoin slid below $60,000. The firm’s mNAV ratio fell to 0.99, leaving just 9.8 months of cash to cover $1.71B in annual dividends.
1. Bitcoin Holdings and Cost Basis
MicroStrategy holds 847,363 BTC purchased for a total of $64.1 billion at an average cost of $75,651 per coin, marking the largest corporate Bitcoin position globally. Bitcoin’s slide below $60,000 has eroded the market value of these holdings, causing the stock to trade at a discount to its digital-asset reserves.
2. Mark-to-Market Losses and Financial Impact
Under the FASB’s quarterly fair-value accounting rule, MicroStrategy recorded a $14.46 billion unrealized loss in early 2026, producing a $12.54 billion net loss or $38.25 per diluted share. The widening gap between share price and asset value has raised dilution concerns for existing shareholders as the company issues new equity to fund additional Bitcoin purchases.
3. mNAV Ratio Drop and Dividend Coverage
The company’s Market-to-Net Asset Value ratio declined to 0.99, the first time below 1, reflecting a loss of premium for its shares over Bitcoin holdings. With $1.4 billion in cash against $1.71 billion in annual dividend obligations, MicroStrategy has only 9.8 months of coverage, while carrying $6.75 billion of debt at 11% leverage and $15.5 billion in preferred securities.
