Strategy Inc Posts $13B Bitcoin Loss as STRC Preferred Stock Falls 25%
MSTR•Strategy Inc is realizing an unrealized Bitcoin loss of about $13 billion as cryptocurrency prices sit below the firm's $75,500 average acquisition cost per coin. Its STRC preferred stock plunged nearly 25% to a record low near $71, and reserves now cover only ten months of dividend obligations.
1. $13 Billion Unrealized Bitcoin Loss
Strategy Inc's Bitcoin holdings have incurred an unrealized loss of approximately $13 billion, reflecting current cryptocurrency prices well below the firm's weighted average acquisition cost of about $75,500 per coin. This loss highlights the steep gap between the company's substantial Bitcoin exposure and prevailing market levels.
2. STRC Preferred Stock Declines and Liquidity Pressure
The company's STRC preferred shares briefly slid to a record low of $71.25 before closing near $75.30, representing a nearly 25% decline from par value. With reserves now covering only ten months of dividend payouts, analysts warn that continued Bitcoin weakness could pressure the dividend model and overall liquidity.
3. Executive Reaffirmation and Regulatory Scrutiny
Executive Chairman Michael Saylor emphasized that market volatility tests the capital structure while reaffirming commitment to disciplined capital allocation and long-term value creation in Bitcoin. Concurrently, a securities investigation has been launched into potential misleading statements across multiple securities, heightening regulatory and shareholder scrutiny.
