What triggered the selloff in MSTR stock today?

Strategy disclosed a US$17.44 billion unrealized Q4 loss under fair value accounting, reflecting about a 24% bitcoin decline in the quarter. That headline increased perceived earnings volatility and pushed traders into defensive positions. With bitcoin as the main driver, the stock reacted quickly to the update and broader crypto sentiment.

Is the US$17.44B unrealized loss a cash loss for Strategy?

No. Under fair value accounting, bitcoin’s market price moves flow through earnings each quarter. The US$17.44B figure is non-cash and reflects quarter-end marks. It can still affect reported net income and investor sentiment, but it does not mean the company sold its bitcoin at a loss during the period.

How does fair value accounting change Strategy’s results?

It makes results more timely and more volatile. Previously, bitcoin was subject to impairment-only accounting. Now, both unrealized gains and losses hit the income statement each quarter. That can create large swings in reported EPS around bitcoin moves, even when operating cash flows from the software business are steady.

How should Canadian investors approach MSTR stock after this update?

Decide if you want leveraged exposure to bitcoin or simpler tracking. For torque, MSTR stock can amplify crypto moves but adds equity and FX risk. For cleaner exposure, consider direct coins or Canadian spot ETFs. Keep position sizes small, set risk limits, and watch the February 3 earnings call for guidance.

Global Market Insights

MSTR Stock Today: Shares Fall on $17.4B Unrealized Loss – January 06

ByHuzaifa Zahoor January 7, 2026

MSTR stock fell today after Strategy Inc disclosed a US$17.44 billion unrealized Q4 loss under new fair value accounting, driven by an estimated 24% bitcoin decline. The update underscores how tightly the shares track bitcoin moves. For Canadian investors, the stock trades in U.S. dollars and adds FX risk. We explain what the loss means, how fair value changes the story, and what to watch next for MSTR and bitcoin (BTCUSD) in the weeks ahead.