MicroStrategy's Bitcoin Treasury Faces First Major Test, $9.4B Underwater at Current Price

According to The Block Research, MicroStrategy (formerly Strategy Inc.) is experiencing its first significant drawdown test of its Bitcoin treasury model. The company holds 847,363 BTC acquired for an average price of $75,651, totaling a $64.10 billion investment. At current valuations, the treasury is worth approximately $54.7 billion, placing it roughly $9.4 billion underwater, or 14.6% below cost.

This marks the first time the company's full preferred-funded capital structure has operated during a deep market correction. Key pressures include annual preferred dividends of approximately $1.7 billion and noteholder put dates beginning in 2027, supported by a $1.4 billion USD reserve that covers only months of dividend obligations. The Block's analysis notes that MSTR common equity now trades at a premium to its residual net asset value once debt and preferred claims are subtracted, meaning the stock declines faster than Bitcoin itself.