Despite a $6.5 billion hit on bitcoin, the strategy is still trading at a premium to its underlying assets.

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

The world’s largest publicly traded corporate bitcoin holder is seeing unrealized losses deepen. MSTR owns 713,502 BTC at an average cost of $76,052. With spot bitcoin near $67,000, the position carries an unrealized loss of nearly $6.5 billion, or roughly 12% relative to its average acquisition price.

Thursday’s drop marks the stock’s largest single-day decline in nearly a year. MSTR is now down 66% over the past 12 months and nearly 80% from its post-election high following Donald Trump’s November 2024 victory.

Despite the steep drawdown, MSTR continues to trade at a slight premium to the net value of its bitcoin holdings, with a multiple of net asset value (mNAV) of about 1.09. This suggests the company could continue issuing common stock to acquire additional bitcoin without materially diluting shareholders.

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

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

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