Strategy's Bitcoin Reserve Shows $11 bn Unrealized Loss as Price Falls

Strategy Holdings, led by Michael Saylor, reported that its Bitcoin position of 843,706 BTC—acquired at an average cost of $75,699 per coin with a total cost basis of $63.8 billion—has fallen to a market value of $52.6 billion. The decline creates an unrealized loss of roughly $11.2 billion as Bitcoin traded around $63,157, down about 4.7 % in the last 24 hours and over 20 % in the past month.

The company sold 32 BTC, its first sale since 2022, and Saylor described the downturn as a “capital rotation” rather than an impairment, noting large inflows into AI infrastructure and outflows from Bitcoin ETFs totaling $4.4 billion in the previous two weeks. Strategy’s variable‑rate perpetual preferred stock (STRC) slipped below its $100 par value to $94.6, while the common stock fell 1.5 % in pre‑market trading.

Analysts offered mixed views: Scott Melker said the STRC price reflects normal risk pricing, whereas Peter Schiff warned that falling STRC could force higher dividend payouts and trigger further Bitcoin sales. Standard Chartered suggested the market may be near a bottom if Strategy makes a sizable repurchase.