Strategy's BTC losses grow to $6.5 billion
Strategy's unrealized losses on its Bitcoin holdings have reached nearly $6.5 billion as BTC trades near $67,000.Summary
Strategy (MSTR), the largest publicly traded corporate holder of Bitcoin, is facing growing unrealized losses on its 713,502 BTC, which now total almost $6.5 billion, representing about 12% relative to its average acquisition cost of $76,052, given spot Bitcoin is near $67,000. Despite this, MSTR shares are down 13% on the day, marking the largest single-day decline in nearly a year, and the stock is down 66% year-over-year. Crucially, Strategy continues to trade at a premium to the net asset value of its Bitcoin holdings (an mNAV of about 1.09), suggesting the company can still issue common stock to buy more Bitcoin without diluting shareholders. Investors await the fourth-quarter earnings report for commentary from Michael Saylor amidst market panic. Separately, Strategy's perpetual preferred equity instrument, STRC, is trading below par at $95, which could trigger a dividend rate increase to 11.5% if it doesn't recover by month's end.
(Source：CoinDesk)