MSTR Annualized Return Hits 42% Despite $11.4B Unrealized Loss

Strategy Inc. reports 42% annualized returns since 2020, outperforming major indices. The firm holds 843,775 BTC with a $11.4B unrealized loss and introduced new capital metrics.

Woofun AI reports that Strategy Inc. has delivered a 42% annualized return on MSTR stock since adopting Bitcoin as its primary reserve asset in August 2020, outperforming the S&P 500, "Magnificent Seven" tech stocks, and Bitcoin itself. The company currently holds 843,775 BTC acquired for approximately $63.69 billion at an average price of $75,476 per coin, resulting in an unrealized loss of roughly $11.4 billion, or 17.9% relative to cost.

To clarify its capital structure, Strategy introduced three new metrics on July 24: Net BTC Per Share, BTC Hurdle ARR, and BTC Floor ARR. These indicators are designed to help investors assess the value of their holdings by defining the minimum annualized returns required to cover financing costs and maintain leverage sustainability. The company also indicated it may sell a portion of its Bitcoin reserves to support future preferred share repurchases.