Strategy reported an $8.22 billion unrealized net loss for Q2 2026 as Bitcoin's price fell below its $75,476 average cost basis. The loss has eroded a long-held investor premium, with its stock (MSTR) down 76% in 12 months. In response, the company has redefined its key mNAV metric twice to manage perceptions of its performance.
Strategy's unrealized Bitcoin losses
- ▪The Q2 2026 loss of $8.22 billion significantly exceeded Wall Street projections of $2.15 billion
- ▪Strategy reported an $8.22 billion unrealized net loss for Q2 2026
- ▪Strategy holds 843,775 BTC at an average cost basis of $75,476 per coin
- ▪Strategy introduced a new metric, BTC Hurdle ARR, setting it at 10.8%, while its reported bitcoin yield for the year was 4.5%
- ▪The loss occurred as Bitcoin's price of around $65,000 fell below the company's average cost basis
mNAV metric redefinitions
- ▪The company's glossary states that mNAV calculations before July 23, 2026, are not comparable to the current metric
- ▪The first mNAV redefinition, called "enterprise value mNAV," added the value of debt and preferred stock into its calculation
- ▪Strategy has redefined its multiple-to-Net Asset Value (mNAV) metric twice to keep its value above a 1x multiple
MSTR stock price decline
- ▪Goldman Sachs notes tied to Strategy are projected to pay approximately 22 cents on the dollar at maturity
- ▪The price of Strategy's stock (MSTR) has declined 38% year-to-date and 76% over the past 12 months
Investor premium erosion
- ▪The company's redefined "enterprise value-adjusted" mNAV fell below the 1x threshold in late June 2026
- ▪The premium investors paid for Strategy stock relative to its Bitcoin holdings, or basic mNAV, fell from 2x to 0.68x over two years
- ▪In July 2024, Strategy's common stock was worth twice the value of its Bitcoin holdings
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