Strategy (MSTR), the world’s largest publicly traded corporate holder of bitcoin BTC$71,091.27, is seeing a quick rise in losses on its vast holdings.

The company currently 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 almost $6.5 billion, or roughly 12% relative to that average cost basis.

Read more: Michael Saylor’s bitcoin stack is officially underwater, but here’s why he likely won't reach for the panic button

MSTR shares are down about 13% on the day, making Thursday the largest single-day decline in nearly one year. The stock's now down 66% year-over-year and nearly 80% from a record high reached shortly after Donald Trump's election victory in November 2024.

Despite that massive drawdown, Strategy continues to trade at a modest premium to the value of the bitcoin on its balance sheet, known in the trade as an mNAV (multiple of net asset value) greater than one — it’s currently about 1.09. This suggests that Michael Saylor and team have the capacity to continue issuing common stock with which to purchase additional bitcoin, without the move being dilutive to shareholders.

The company reports its fourth-quarter earnings after the bell on Thursday evening. No surprises are expected in the results, but investors will surely be interested to see what Saylor has to say, given the current market panic.

Meanwhile, STRC, Strategy’s perpetual preferred equity instrument, marketed as a high-yield, high-credit, money-market-style product, is trading around $95, below its $100 par value. If STRC fails to recover to par by month's end, the dividend rate is expected to step up by an additional 25 basis points to 11.5%.

The only other comparable perpetual preferred equity currently trading is Strive’s (ASST) SATA, which is down roughly 4% at $86 and would also likely require a dividend increase to return to par. Strive’s common equity, ASST, is down approximately 11% on the day, trading near $0.52 per share.