MSTR Stock Slides to 2024 Lows as Bitcoin Losses Near $3B

Background and Context

The recent slide in Strategy’s shares and Bitcoin holdings was driven by a broader cryptocurrency market selloff in early 2026. During this period, Bitcoin fell below $73,000, with intraday lows in the mid-$70,000s. These moves reflected renewed macroeconomic pressure, including concerns over possible Federal Reserve policy shifts and continued global economic uncertainty. Against this backdrop, the latest MSTR stock Bitcoin losses mirrors stress across the wider crypto market.

As Bitcoin dropped below Strategy’s average acquisition price of roughly $76,052, the value of its 713,502 BTC declined sharply. Consequently, unrealized losses exceeded $2 billion at multiple points and approached $3 billion during the deepest dips. Because Strategy funded much of its Bitcoin accumulation through debt and equity issuance, the current MSTR stock Bitcoin losses underscores how sensitive the company’s balance sheet has become to Bitcoin price swings.

Importantly, this situation is not unprecedented. During the 2022 crypto winter, Bitcoin fell from nearly $69,000 in November 2021 to under $16,000 by late 2022. At that time, Strategy held around 130,000 BTC and recorded billions in unrealized losses. Those losses fueled concerns about margin calls and technical insolvency. 

Current Market Impact

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The latest downturn has renewed scrutiny of Strategy’s business model. Over the past six months, the stock has declined more than 65%. At the same time, it now trades at roughly 0.7 times the net asset value of its Bitcoin holdings. Historically, Strategy often traded at a premium of two to three times NAV, which underscores how sharply market sentiment has shifted.

As a result, bearish positioning has increased. Inverse ETFs that bet against MSTR, including GraniteShares’ product, have surged and recently hit a record price of $114 per share. Meanwhile, the broader crypto market has also felt the impact. Bitcoin’s brief move below $75,000 triggered more than $500 million in liquidations and pressured other companies with large Bitcoin exposure.

Future Outlook

Looking ahead, Strategy’s outlook depends largely on Bitcoin’s price trajectory. Michael Saylor has reiterated his intention to continue accumulating Bitcoin through 2026. In fact, the company recently added 855 BTC despite the ongoing drawdown, signaling strong long-term conviction.

However, near-term volatility remains a concern. Strategy is set to report Q4 2025 earnings on February 5, and the results are expected to reflect substantial unrealized losses. Estimates already factor in roughly $17.44 billion in unrealized losses from Bitcoin’s decline during the quarter.

If Bitcoin rebounds above $80,000, as some forecasts suggest in the event of future rate cuts, Strategy’s stock could recover quickly. On the other hand, if weakness persists, investors may raise fresh questions about funding, particularly given the company’s debt levels and 11.25% preferred dividend obligations.