Michael Saylor’s Strategy is $630M underwater after Bitcoin fell below $76K, erasing $47B in unrealized gains amid market-wide liquidations.
Michael Saylor’s Strategy has moved into an unrealized loss position as Bitcoin fell below the firm’s average purchase price.
Market data shows Strategy is now approximately $630 million underwater, reversing large paper gains recorded only months earlier.
The development has renewed scrutiny of Strategy’s balance sheet, funding structure, and Bitcoin exposure during a broader market downturn.
Strategy’s Unrealized Loss and Bitcoin Cost Basis
Strategy’s unrealized loss emerged after Bitcoin dropped below its average cost basis of $76,037.
Four months earlier, the company reported nearly $47 billion in unrealized gains during Bitcoin’s rally. Those gains have now fully reversed due to recent price declines.
Bitcoin remains up roughly 550% since Strategy began buying in August 2020. However, heavy purchases near market peaks reduced overall returns.
Based on current prices, Strategy’s total Bitcoin return stands near negative 0.3%.
Despite the loss, Strategy continues to hold its full Bitcoin position. The company has not announced any sales or changes to its accumulation strategy.
Public filings show the firm still treats Bitcoin as a long-term treasury asset.
Market Volatility and Liquidation Pressure
The broader crypto market experienced sharp declines during the same period. Binance data shows Bitcoin fell below $75,000 and traded near $73,304.
The price declined 6.14% over the last 24 hours.
Ethereum also saw notable losses, falling below $2,200 to around $2,123. ETH declined 7.79% during the same timeframe.
The price movements followed rising liquidation activity across major exchanges.
Total liquidations reached $619.23 million over 24 hours. Long positions accounted for $506.79 million, while short positions totaled $112.44 million.
The data reflects elevated leverage across crypto markets.
Balance Sheet Structure and External Commentary
Strategy’s Bitcoin holdings are not pledged as collateral for margin loans. Most of the company’s debt is unsecured and matures between 2028 and 2030.
The firm has previously stated it maintains sufficient liquidity for near-term obligations.
Strategy has also disclosed holding enough cash to cover interest and dividend payments for over two years.
This reduces pressure to sell Bitcoin during short-term price declines. The company has not reported any liquidity shortfall.
An investor known as “NoLimit,” who claims to have predicted the COVID market crash, warned of a possible collapse within twelve months.
The claim has not been supported by new financial disclosures. Strategy has not responded publicly to the statement.
Related Reading: Strategy Adds 2,932 Bitcoin in $264M Buy as Holdings Near 713K BTC
What the Loss Means for Strategy’s Position
The current unrealized loss reflects market pricing rather than operational changes.
Strategy’s Bitcoin count remains unchanged, and its debt terms have not been modified. No forced selling mechanisms have been disclosed.
Past market cycles show Strategy previously held Bitcoin below cost without selling. During earlier downturns, Bitcoin traded well under the firm’s average price for extended periods.
The company maintained its holdings throughout those phases.
At present, the loss represents accounting exposure tied to price movements. Strategy’s financial position continues to depend on Bitcoin’s future market value.
No insolvency proceedings or asset sales have been announced.
Source: https://www.livebitcoinnews.com/saylor-is-630m-underwater-what-this-really-means-for-strategy/
