Key Insights:
- MicroStrategy stock remains volatile as the company expands STRC to support continued Bitcoin acquisitions.
- MSTR stock falls 5.16% as Bitcoin trades below prior highs and investor sentiment weakens.
- Strategy posts $12.4B Q4 loss amid $17.4B unrealized digital asset decline under fair value rules.
MicroStrategy stock remains under pressure as the company expands its STRC offering to manage volatility and continue Bitcoin purchases. The company’s leadership confirmed plans to issue more Stretch perpetual preferred shares. Meanwhile, MSTR stock declined again as Bitcoin prices fluctuated below prior highs.
Strategy, formerly known as MicroStrategy, outlined its updated financing approach in a statement from CEO Phong Le. He said the company will issue additional shares of its Stretch (STRC) perpetual preferred stock. The move aims to address MicroStrategy stock volatility while maintaining ongoing BTC acquisitions.
MicroStrategy Stock Volatility Prompts STRC Expansion
Phong Le said the company designed STRC to offer digital capital exposure with reduced volatility. He stated that Stretch closed at $100 and that the dividend resets monthly. The current monthly reset dividend rate stands at 11.25%.
According to Le, the dividend structure favors trading around the $100 level. He said this mechanism helps reduce price swings tied to market instability. As a result, Strategy expects the issuance to support continued BTC purchases.
Perpetual preferred shares represent a smaller share of Strategy’s funding mix. The company previously raised $370 million through MSTR common shares and $7 million through preferred shares. These funds backed recent Bitcoin acquisitions.
Executive Chairman Michael Saylor also confirmed the company will continue buying BTC. He stated that Strategy does not plan to sell its holdings. This position remains unchanged despite ongoing market volatility.
MicroStrategy Stock Declines as Bitcoin Pulls Back
MSTR stock has endured swings in recent months. The stock is down nearly 20% year to date. It has also declined about 70% since the October crypto market crash.
On Wednesday, MSTR stock fell another 5.16% to close at $126.14. The company’s market capitalization dropped to roughly $40 billion. At the same time, Bitcoin fell nearly 50% from a peak above $126,000 to below $65,000.
Continued equity issuance to fund BTC purchases has weighed on investor sentiment. Several analysts lowered price targets following recent corrections. MicroStrategy stock remains closely tied to Bitcoin price movements.
During the fourth quarter of 2025, the company had a net loss of $12.4 billion. That translates into $42.93 per diluted common share. In the same quarter of the previous year, the loss was $670.8 million.
Strategy also had an operating loss of $17.4 billion. The figure shows an unrecognized $17.4 billion loss on digital assets under fair value accounting. This accounting method adjusts the value of assets according to the market value.
The trend of unrealised loss has continued into the current quarter. Strategy currently has close to $6 billion in unrealized losses on its Bitcoin holdings. These numbers have put additional pressure on MicroStrategy’s stock performance.
Bitcoin Trading Activity Continues
Bitcoin trading activity remains despite pressure on MSTR stock. BTC was trading at $68210.42 at the time of writing. The asset has gone up by 1.32% over the past 24 hours.
The daily trading volume of Bitcoin stood at $45,995,526,551. The cryptocurrency is ranked number one on CoinMarketCap. It has a live market capitalization of $1,363,401,860,899.