Key Takeaways
- MicroStrategy (MSTR) shares have plummeted nearly 35% during the last seven trading sessions, marking its steepest decline since late 2022.
- The cryptocurrency touched an intraday bottom of $58,065 on Thursday, representing its weakest level since September 2024.
- MicroStrategy’s Bitcoin portfolio totals approximately 844,000 coins purchased at a mean cost of roughly $75,600, resulting in unrealized losses exceeding $13 billion.
- The company’s Stretch preferred shares (STRC) plunged to an all-time low of $73.62, hampering Strategy’s capacity to finance additional cryptocurrency acquisitions.
- MSTR shares have collapsed more than 81% from their July 2025 peak of $457.22.
MicroStrategy (MSTR) shares were positioned for yet another session of losses on Friday as the cryptocurrency continued languishing beneath the $60,000 threshold, extending what has become the firm’s most severe downturn in recent memory.
Throughout the previous seven trading sessions, MSTR has shed approximately 35% of its value. This represents the equity’s most dismal seven-day stretch since the period concluding on November 16, 2022, based on data from Dow Jones Market Data. Should the selloff persist, it would constitute the lengthiest consecutive drop since December 2022.
Shares were most recently changing hands near $85.50, having now surrendered more than 81% from their July 2025 zenith of $457.22.
Mounting Paper Losses on Cryptocurrency Holdings
Strategy maintains a position of roughly 844,000 BTC, accumulated at an average entry point of approximately $75,600 per token. With the cryptocurrency now changing hands below $60,000, the enterprise is confronting an unrealized mark-to-market deficit surpassing $13 billion.
According to fair-value accounting standards, these paper deficits impact the income statement directly, suggesting MicroStrategy may disclose a substantial quarterly loss during its upcoming earnings release.
For context, that $13 billion figure surpasses Dogecoin’s complete market capitalization, presently calculated at roughly $12.97 billion.
The cryptocurrency itself descended to an intraday floor of $58,065 on Thursday, a price point unseen since September 2024. The widespread technology sector correction has been dragging risk-sensitive assets downward, with Bitcoin experiencing no exemption.
The downward momentum accelerated following Apple’s Thursday announcement of product price increases, attributed to elevated memory and storage chip expenses. This development sparked anxiety regarding the longevity of the artificial intelligence investment cycle and drove investors further from speculative positions.
Preferred Share Collapse Undermines Capital Strategy
A distinct yet interconnected challenge is applying pressure on MicroStrategy from an alternative direction. The corporation has depended substantially on its Stretch preferred securities (STRC) to generate funds for Bitcoin purchases. This approach functions effectively when STRC trades at or near its $100 par designation — MicroStrategy distributes new preferred securities, collects proceeds, and acquires additional cryptocurrency.
However, STRC plummeted to an unprecedented low of $73.62 during the current week. At such a pronounced markdown, generating additional capital through preferred issuances becomes expensive and inefficient.
This situation also generates tension around dividend obligations. STRC already features an 11.5% annual dividend yield. The deeper it trades beneath par value, the more challenging it becomes to maintain those payments without eroding value for common equity holders.
MicroStrategy revealed earlier this week that it utilized revenue from common share offerings to satisfy preferred dividend commitments and bolster cash positions. While this represents a functional solution, it arrives at the expense of diluting current common shareholders — a compromise the market has responded to unfavorably.
Longstanding cryptocurrency skeptic Peter Schiff commented on X this week, contending that MSTR may soon exchange at a 40% markdown relative to the fundamental value of its cryptocurrency reserves.
“The optimal approach to generating shareholder value would involve liquidating Bitcoin to repurchase shares until the valuation gap is eliminated,” Schiff stated.
MicroStrategy’s equity has now descended to its weakest position in 28 months.
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