Strategy Shares Hit $81.81 Low as mNAV Falls Below 1× and Unrealized Losses Top $14B
MSTR•Strategy’s shares slid to an annual low of $81.81 last week, erasing 29% of its value as market capitalization fell below its Bitcoin holdings valuation (mNAV below 1). A Bitcoin price drop under $60,000 generated a $14.46 billion unrealized loss and $12.54 billion net loss under new accounting rules.
1. Share Price Slide and NAV Undervaluation
Strategy’s shares slid to an annual low of $81.81, erasing 29% of value over eight sessions as Bitcoin’s decline pushed the company’s market capitalization below the fair value of its holdings (mNAV below 1). Retail sentiment remained bullish despite the prolonged selloff.
2. Accounting Losses on Bitcoin Holdings
The firm holds 847,363 BTC purchased for $64.1 billion at an average of $75,651 per coin; a drop below $60,000 triggered a $14.46 billion unrealized loss and a $12.54 billion net loss under FASB ASU 2023-08 quarterly fair-value marking.
3. Financing Obligations and Dilution Threats
Strategy’s balance sheet includes $6.75 billion in debt and $15.5 billion in preferred securities, with cash covering less than a year of dividends. Issuing new shares at or below mNAV risks further dilution, even as leadership signals potential additional Bitcoin acquisitions.
