Key Highlights
- MSTR shares have plummeted approximately 35% across the last seven trading days, marking the worst performance period since late 2022.
- Bitcoin plunged to $58,065 during Thursday’s session, reaching its weakest intraday point since September 2024.
- The company maintains a position of around 844,000 BTC purchased at an average entry price of approximately $75,600, resulting in over $13 billion in unrealized losses.
- The STRC preferred shares plunged to an all-time low of $73.62, severely hampering Strategy’s capacity to raise capital for additional Bitcoin acquisitions.
- MSTR has now declined over 81% from its peak of $457.22 reached in July 2025.
Strategy (MSTR) stock was poised for yet another decline on Friday as Bitcoin remained trapped below the $60,000 threshold, intensifying what has become the firm’s most severe downturn in years.
Throughout the past seven sessions, MSTR has shed nearly 35% of its value. This represents the worst seven-day stretch for the equity since the period concluding on November 16, 2022, based on data from Dow Jones Market Data. Should this downward trajectory persist, it would mark the longest consecutive losing streak since December 2022.
Shares were recently changing hands near $85.50, representing a devastating decline of more than 81% from the stock’s July 2025 peak of $457.22.
Mounting Paper Losses on Bitcoin Position
Strategy maintains a holding of roughly 844,000 BTC, accumulated at an average purchase price of approximately $75,600 per token. With Bitcoin currently trading below $60,000, the corporation faces an unrealized mark-to-market deficit exceeding $13 billion.
According to fair-value accounting standards, these paper losses are recognized directly on the income statement, which means Strategy faces the prospect of reporting substantial quarterly losses in its upcoming earnings release.
For context, that $13 billion loss figure actually surpasses the complete market capitalization of Dogecoin, which currently stands at roughly $12.97 billion.
Bitcoin declined to an intraday trough of $58,065 on Thursday, a price level unseen since September 2024. The widespread technology sector sell-off has been dragging risk-oriented assets lower, with Bitcoin caught in the downdraft.
The selling pressure escalated following Apple’s announcement Thursday that it would increase prices on certain products due to elevated memory and storage chip costs. This development sparked anxiety regarding the viability of AI-related spending trends and pushed investors further away from riskier asset classes.
Preferred Share Collapse Threatens Capital Strategy
A distinct but interconnected challenge is creating additional pressure on Strategy. The enterprise has leaned extensively on its Stretch preferred stock (STRC) as a mechanism to generate capital for Bitcoin purchases. This approach functions effectively when STRC trades at or near its $100 par value — Strategy can issue fresh preferred shares, collect proceeds, and deploy that capital into Bitcoin.
However, STRC collapsed to an unprecedented low of $73.62 during the current week. At such a significant discount to par, attempting to raise additional capital through preferred share issuance becomes economically unfeasible and extremely dilutive.
This situation also generates concerns regarding the dividend commitment. STRC currently carries an 11.5% annual dividend obligation. The deeper it trades below par value, the more challenging it becomes to maintain that payment schedule without imposing dilution on common equity holders.
Strategy revealed earlier in the week that it had utilized proceeds from common stock sales to satisfy preferred dividend requirements and bolster its cash position. While this represents a viable short-term solution, it arrives at the expense of diluting existing common shareholders — a compromise that market participants have clearly rejected.
Veteran Bitcoin skeptic Peter Schiff offered his perspective on X this week, suggesting that MSTR could imminently trade at a 40% discount relative to the net asset value of its Bitcoin portfolio.
“The optimal approach to generate shareholder value would involve selling Bitcoin to execute share buybacks until the discount gap is eliminated,” Schiff stated.
Strategy’s equity has now fallen to its weakest level in 28 months.
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