Strategy has $6.5 billion loss on BTC, but continues trading at premium to value of its assets

Group 1 - Strategy (MSTR) is experiencing significant unrealized losses on its bitcoin holdings, currently owning 713,502 BTC at an average acquisition price of $76,052, resulting in a loss of nearly $6.5 billion or about 12% relative to the average cost basis [1] - MSTR shares have declined approximately 13% in a single day, marking the largest drop in nearly a year, and are down 66% year-over-year, nearly 80% from a peak following Donald Trump's election victory in November 2024 [2] - Despite the substantial decline, MSTR trades at a modest premium to the value of its bitcoin holdings, with an mNAV of about 1.09, indicating the company can issue common stock to acquire more bitcoin without diluting shareholder value [3] Group 2 - The company is set to report its fourth-quarter earnings, with no surprises anticipated, but investor interest is high regarding comments from CEO Michael Saylor amid current market conditions [4] - Strategy's perpetual preferred equity instrument, STRC, is trading around $95, below its $100 par value, and if it does not recover by the end of the month, the dividend rate is expected to increase by 25 basis points to 11.5% [5] - A comparable perpetual preferred equity, Strive's SATA, is also trading down at $86 and may require a dividend increase to return to par, with Strive's common equity down approximately 11% [6]