MicroStrategy’s Shares Plunge Over 29% as mNAV Falls Below 1
MSTR•MicroStrategy’s shares plunged more than 29% over last week as Bitcoin’s slide pushed its market cap below its Bitcoin holdings (mNAV below 1) and extended eight straight sessions of losses. The firm booked a $14.46B unrealized loss and has $6.75B debt, $15.5B preferred securities and under-one-year dividend cash coverage.
1. Share Performance and NAV Decline
MicroStrategy’s shares plunged over 29% last week after Bitcoin prices fell below key thresholds, driving the company’s market capitalization below the value of its Bitcoin holdings (mNAV below 1). The stock extended eight consecutive sessions of losses as investors abandoned the premium previously attached to its digital-asset position.
2. Unrealized Losses and Balance Sheet Exposure
The firm recorded a $14.46B unrealized loss on its Bitcoin holdings under the new accounting standard, resulting in a $12.54B net loss for the period. It carries $6.75B of debt and $15.5B of preferred securities, while cash reserves cover less than a year of dividend payments.
3. Management Outlook and Investor Dilution
Executive chairman Michael Saylor signaled intentions to accumulate additional Bitcoin by sharing an acquisition chart, suggesting continued reliance on stock and debt sales to fund purchases. This strategy exacerbates dilution risk, as new share issuances at or below 1.0x mNAV reduce existing shareholders’ effective claim on the company’s digital assets.
