MicroStrategy’s Bitcoin Bet Generates $14.46B Fair Value Loss, mNAV Falls to 0.99
MSTR•MicroStrategy holds 847,363 BTC bought for $64.1bn at $75,651 each and trades below its holdings as Bitcoin dips under $60,000, forcing a $14.46bn unrealized fair-value loss and a market-to-net asset ratio of 0.99. It has $1.4bn cash versus $1.71bn annual dividends, implying under 10 months of liquidity without selling Bitcoin.
1. Bitcoin Holdings and Fair-Value Loss
MicroStrategy holds 847,363 BTC acquired at an average cost of $75,651 per coin, representing a $64.1bn position. A decline in Bitcoin to below $60,000 triggered a $14.46bn unrealized loss under the quarterly fair-value standard, delivering a $12.54bn net loss, or $38.25 per diluted share.
2. mNAV Ratio Dips Below Unity
The market-to-net asset value ratio fell to 0.99 for the first time, indicating shares trade below the underlying Bitcoin value. This removes the premium that funded past purchases and makes raising capital more dilutive for existing shareholders.
3. Cash, Dividend, and Debt Pressures
The company holds $1.4bn in cash against $1.71bn of annual dividend obligations, leaving under 10 months of coverage without selling Bitcoin. It carries $6.75bn of debt at an 11% net leverage ratio and has $15.5bn in preferred securities outstanding.
