Key Takeaways
Strategy (MSTR) shares have plummeted nearly 35% in the last seven trading sessions, marking its steepest decline since November 2022.
Bitcoin plunged to an intraday low of $58,065 on Thursday, the weakest level observed since September 2024.
The company maintains a position of approximately 844,000 BTC with an average purchase price near $75,600, resulting in paper losses exceeding $13 billion.
The company’s Stretch preferred shares (STRC) plummeted to an all-time low of $73.62, severely restricting its capacity to finance additional Bitcoin acquisitions.
MSTR has collapsed over 81% from its July 2025 peak of $457.22.
Strategy (MSTR) stock faced mounting pressure heading into Friday’s session as Bitcoin remained trapped below the critical $60,000 threshold, extending what has become the company’s most brutal selloff in more than two years.
Strategy Inc, MSTR
Across the previous seven trading sessions, MSTR has hemorrhaged nearly 35% of its value. This marks the stock’s most severe seven-day decline since the period concluding November 16, 2022, based on data from Dow Jones Market Data. Should the downturn persist, it would represent the longest string of consecutive losses since December 2022.
Shares were last changing hands near $85.50, reflecting a catastrophic decline of more than 81% from the July 2025 peak of $457.22.
Massive Paper Losses Accumulate on Bitcoin Holdings
Strategy maintains a Bitcoin treasury of roughly 844,000 BTC, accumulated at an average entry price of approximately $75,600 per token. With Bitcoin currently trading beneath $60,000, the enterprise is grappling with unrealized mark-to-market losses surpassing $13 billion.
According to fair-value accounting standards, these paper losses must be recognized directly in the income statement, positioning Strategy for potentially massive quarterly losses when next reporting financial results.
For context, that $13 billion unrealized loss exceeds the total market capitalization of Dogecoin, which currently stands at roughly $12.97 billion.
Bitcoin touched an intraday bottom of $58,065 during Thursday’s session, representing the lowest point registered since September 2024. The widespread technology sector selloff has dragged down risk-sensitive assets across the board, with Bitcoin proving vulnerable to the same forces.
The selling pressure accelerated following Apple’s announcement Thursday regarding price increases on select products, attributed to elevated memory and storage chip expenses. This development sparked fresh anxiety about the viability of continued AI infrastructure spending and drove investors further toward safety.
Preferred Share Collapse Destroys Capital-Raising Engine
A distinct yet interconnected challenge is applying additional pressure on Strategy from a different direction. The corporation has depended extensively on its Stretch preferred instrument (STRC) to generate capital for Bitcoin purchases. This mechanism functions effectively when STRC trades at or near its $100 par value — Strategy releases new preferred shares, receives the proceeds, and deploys the capital into Bitcoin.
However, STRC crashed to an unprecedented low of $73.62 during this week’s trading. At such a substantial discount to par, generating new capital through preferred stock issuance becomes economically punitive and largely unfeasible.
This situation also generates stress around dividend sustainability. STRC already commits to an 11.5% annual dividend yield. The deeper it trades below par value, the more challenging it becomes to maintain that distribution without imposing dilution on common equity holders.
Strategy revealed earlier this week that proceeds from common share sales were deployed to satisfy preferred dividend commitments and bolster cash positions. While this approach offers a temporary solution, it arrives at the expense of diluting current common shareholders — a compromise that has triggered negative market reactions.
Longstanding Bitcoin skeptic Peter Schiff offered commentary on X this week, projecting that MSTR could imminently trade at a 40% discount relative to the net asset value of its Bitcoin portfolio.
“The best way to create shareholder value would be to sell Bitcoin to buy back shares until the discount is closed,” Schiff posted.
Strategy’s equity has now declined to its weakest level in 28 months.
