The BTC-focused strategy has posted $6.5 billion in losses yet remains priced above the value of its holdings.

Ahead of its fourth-quarter earnings report tonight, Strategy (MSTR) shares fell roughly 13% as bitcoin dipped back toward $68,000.

The world’s largest publicly traded corporate bitcoin holder is facing mounting unrealized losses. MSTR owns 713,502 BTC at an average acquisition price of $76,052. With spot bitcoin trading near $67,000, this represents an unrealized loss of about $6.5 billion, or roughly 12% relative to its cost basis.

Thursday’s decline marks the stock’s largest single-day drop in nearly a year. MSTR is down 66% over the past 12 months and almost 80% from its post-election high following Donald Trump’s November 2024 victory.

Despite the drawdown, MSTR continues to trade at a modest premium to the value of its bitcoin holdings. Its multiple of net asset value (mNAV) sits at approximately 1.09, suggesting the company could still issue common stock to acquire additional bitcoin without significantly diluting shareholders.

Investors will be watching CEO Michael Saylor’s commentary in Thursday’s earnings call, though no major surprises are expected.

Meanwhile, Strategy’s perpetual preferred equity, STRC — a high-yield, money-market-style instrument — is trading around $95, below its $100 par value. If STRC fails to return to par by month-end, the dividend rate is expected to rise 25 basis points to 11.5%.

By comparison, Strive’s (ASST) perpetual preferred, SATA, is down roughly 4% at $86 and may require a dividend adjustment to return to par. Strive’s common stock, ASST, fell about 11% on the day, trading near $0.52.