Michael Saylor’s Bitcoin stack has turned unprofitable after BTC tumbled to $75,314 per coin, slipping below Strategy’s average holding cost of $76,037 per Bitcoin.
Strategy, the largest BTC corporate holder with 712,647 BTC, is now facing an unrealized loss of over $900 million, Lookonchain reported Monday.
Last week, Strategy disclosed that it had expanded its Bitcoin treasury again, purchasing 2,932 BTC for approximately $264.1 million during the period from Jan. 20 to Jan. 25.
At the time, the purchases were made at an average price of $90,061 per coin, inclusive of fees and expenses.
Strategy Doesn’t Seem to Slow Down Its BTC Buying Spree
On Monday, Bitcoin slumped to a seven-week low, hovering around $75,000 after dipping below $76,000 over the weekend. The largest crypto by market cap is trading at $75,871 at press time, after falling 3.96% over the last 24 hours.
With Bitcoin’s decline and Strategy’s holdings in the red, MSTR shares remain highly sensitive due to equity-funded BTC purchases. Strategy Inc. shares are down about 61% over the past six months and were trading near $149.71 at press time, according to Google Finance data.
Though Strategy’s BTC holdings losses are not realized, it plays a major role as its stock is tied to Bitcoin’s price. However, the losses does not incur any balance sheet stress or forced selling risk.
Amidst the market chaos and losses, Saylor has touted another potential purchase on Sunday, writing his signature message – more “orange.”
The crypto community reacted to his “unstoppable” Bitcoin buying spree despite markets staying on edge. Some pointed out that the confidence simply shows Strategy’s ability to grow its crypto stack without liquidating and diluting shareholders.
Will Bitcoin Maintain Current Levels?
Strategy’s next move depends on the ability of Bitcoin to maintain current levels. A deeper decline could swiftly result in fresh pressure on the company’s stock and holdings.
Further, BTC’s slip triggered a rapid liquidation cascade, with nearly $1B in long positions wiped out in minutes.
“After this leverage-driven sell-off, BTC is attempting to stabilize in the $75K–$77K zone, where most liquidations have cleared. If this support holds, selling pressure may ease and price could range or recover gradually, with $80K as the first resistance,” Indian crypto exchange CoinSwitch Markets Desk told Cryptonews.
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