Bitcoin Slide Pushes Strategy's Paper Loss to $6.85 Billion
MSTR sits 34% above its 52-week low of $81.81.
Summary
Bitcoin's intraday drop below $67,000 pushed Strategy's 850,364 BTC position to roughly $57.3 billion in value against a $64.16 billion purchase cost, a paper loss of about $6.85 billion, or 10.7% of the original investment. The company kept buying into the decline, spending about $81.9 million of common-stock proceeds on 1,036 BTC between November 2 and November 8 at an average $79,012, and those coins are already underwater. This lands days after MSCI said it will remove Strategy and other bitcoin-treasury companies from its global indexes, so the stock is absorbing both a weaker collateral base and reduced passive demand. The swing is violent: Q3 showed a $20.91 billion bitcoin mark-up and $19.53 billion of net income, and that gain is now unwinding with spot prices. Watch the weekly ATM purchase disclosures and the next 8-K for whether the company slows buying or leans harder on stock sales while the position sits at a loss.
At the time of this announcement, MSTR was trading at $109.73 on NASDAQ in the Crypto Assets sector, with a market capitalization of approximately $47.1B. The 52-week trading range was $81.81 to $226.00. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Bloomingbit.