The recent downturn in Bitcoin has resulted in Strategy’s unrealized losses exceeding $11 billion. The company’s holdings of 843,706 Bitcoin, purchased at an average rate of $75,699 each, now face significant scrutiny as Bitcoin trades below this acquisition price, diminishing the value of their reserve to $52.6 billion.
Michael Saylor addressed the situation, attributing the pressure on Bitcoin to recent outflows from exchange-traded funds and increased investment in AI infrastructure, which he noted has drawn $400 billion over the last six months. He emphasized that this represents a shift in capital rather than a decline in Bitcoin’s viability.
Currently, Bitcoin’s price has dropped approximately 4.7% in the past day and 13.8% over the past week, settling at $63,157. Strategy’s variable-rate perpetual preferred stock, STRC, has also fallen to $94.6, below its designated value of $100, complicating potential future funding for Bitcoin acquisitions.