Strategy’s Bitcoin holdings fell deep into paper-loss territory as BTC traded below the company’s average purchase price, renewing scrutiny of Michael Saylor’s Bitcoin treasury model.
Strategy holds 843,706 Bitcoin (BTC) acquired at an average price of $75,699 per coin, with a total cost basis of $63.8 billion. However, the latest Bitcoin downturn sank the value of Strategy’s Bitcoin reserve to $52.6 billion, pushing its unrealized loss to $11.2 billion, according to the company’s dashboard.
Strategy’s variable-rate perpetual preferred stock, STRC, has also declined below its intended $100 value and is traded at $94.6 at the time of writing. Strategy’s (MSTR) stock price was down 1.5% in pre-market trading to $124.7 on Thursday, Yahoo Finance data shows.
The paper loss adds to scrutiny of Strategy’s Bitcoin treasury model as BTC trades below the company’s average acquisition price, while the downturn in STRC price could complicate future preferred-stock issuance to fund its Bitcoin acquisitions. It comes days after Strategy announced the sale of 32 BTC, its first sale since 2022.
Strategy dashboard with key metrics on its Bitcoin reserve. Source: Strategy.com
Saylor pushed back on the bearish read Thursday, saying that mounting exchange-traded fund (ETF) outflows are “pressuring BTC,” and capital markets have poured $400 billion into AI infrastructure over the past six months.
“This is a capital rotation, not a Bitcoin impairment. Volatility creates opportunity,” said Saylor in an X post.
Source: Michael Saylor
Bitcoin’s price is down around 4.7% in the past 24 hours and 13.8% in the past week. The cryptocurrency traded at $63,157 at the time of writing, down over 20% in the past month, according to TradingView. Spot Bitcoin ETFs have logged $4.4 billion in outflows in the past 13 trading days, Cointelegraph reported earlier on Thursday.
BTC/USD, 1-month chart. Source: Cointelegraph/TradingView
Some market watchers said the STRC move was not unusual.
“STRC’s $100 par value is not a price floor. It’s the stated value used for liquidation preference and certain redemption provisions,”…
..
