Ahead of its fourth-quarter earnings report tonight, Strategy (MSTR) shares fell about 13% as bitcoin slipped back toward $68,000.

The world’s largest publicly traded corporate bitcoin holder is now facing mounting unrealized losses. MSTR owns 713,502 BTC at an average acquisition price of $76,052. With spot bitcoin near $67,000, that translates to an unrealized loss of roughly $6.5 billion, or about 12% relative to its cost basis.

Thursday marked the stock’s biggest single-day decline in nearly a year. MSTR is down 66% year-over-year and nearly 80% from its post-election high following Donald Trump’s November 2024 victory.

Despite the drawdown, MSTR continues to trade at a slight premium to the value of its bitcoin holdings. Its multiple of net asset value (mNAV) stands at roughly 1.09, suggesting the company could still issue stock to acquire more bitcoin without materially diluting shareholders.

Investors will be watching CEO Michael Saylor’s remarks in Thursday’s earnings call, though no major surprises are expected.

Meanwhile, Strategy’s perpetual preferred equity, STRC — marketed as a high-yield, money-market-style product — is trading around $95, below its $100 par value. If STRC does not recover to par by the end of the month, the dividend rate is expected to rise 25 basis points to 11.5%.

For comparison, Strive’s (ASST) perpetual preferred, SATA, is down about 4% at $86 and would likely require a dividend increase to return to par. Strive’s common stock, ASST, fell roughly 11% on the day, trading near $0.52.