MicroStrategy’s $64.1B Bitcoin Position Suffers $14.5B Fair-Value Loss
MSTR•Strategy holds 847,363 BTC bought at an average $75,651 cost for $64.1B, while Bitcoin trades below $60,000 causing its stock to sink under its holdings value. ASU 2023-08 fair-value accounting forced a $14.46B unrealized loss in early 2026, driving a $12.54B net loss equating to $38.25 per diluted share.
1. Corporate Bitcoin Holdings
Strategy currently holds 847,363 BTC acquired at an average price of $75,651 per coin for a total cost basis of $64.1 billion, making it the largest corporate Bitcoin reserve. With BTC trading below $60,000, the market value of these holdings has dropped, pushing the stock below net asset value.
2. Fair-Value Accounting Impact
Under FASB’s ASU 2023-08, Strategy must mark its Bitcoin to fair value each quarter, resulting in a $14.46 billion unrealized loss in early 2026. This loss contributed to a $12.54 billion net loss, or $38.25 per diluted share, directly reflecting market volatility in the income statement.
3. Dilution and Funding Flywheel
The company’s model relies on selling equity and debt to fund Bitcoin purchases, creating a flywheel that spins in reverse when prices fall. For example, a $1 billion equity issuance at a 1.0x mNAV would dilute existing shareholders by about 48 basis points, costing them roughly $310 million in net asset value.
4. Market and Liquidation Risks
Strategy’s mNAV ratio slid to 0.99 for the first time, signaling the market isn’t paying a premium over the Bitcoin on its balance sheet and hindering future capital raises. With $1.4 billion in cash versus $1.71 billion in annual dividends and $6.75 billion in debt, prolonged low Bitcoin prices could strain liquidity or trigger liquidation clauses.
