Strategy’s massive Bitcoin holdings have fallen into a significant paper loss as Bitcoin trades below the company’s average acquisition price. The company’s 843,706 BTC, purchased for an average of $75,699 per coin, are now worth approximately $52.6 billion, resulting in an $11.2 billion unrealized loss. The downturn has also pushed the price of its variable-rate perpetual preferred stock, STRC, below its intended $100 value. Executive Chairman Michael Saylor described the market movement as a “capital rotation, not a Bitcoin impairment,” while analysts debate the implications for the company’s treasury model.
Strategy’s Bitcoin reserve is now valued at $52.6 billion, according to the company’s dashboard. This represents an $11.2 billion paper loss from its total $63.8 billion cost basis for 843,706 Bitcoin.
The company’s variable-rate perpetual preferred stock, STRC, has <a target=”_=”_blank” href=”https://finance.yahoo.com/quote/STRC/” rel=”nofollow noopener”>declined to $94.6. This drop comes amid a broader Bitcoin sell-off that has seen the cryptocurrency’s price fall over 20% in the past month.
Executive Chairman Michael Saylor addressed the situation on social media. “This is a capital rotation, not a Bitcoin impairment. Volatility creates opportunity,” he stated.
Market observers offered differing perspectives on the STRC price movement. Popular investor Scott Melker wrote that a discount to par value is normal for preferred stocks. In contrast, critic Peter Schiff said the lower price could force earlier Bitcoin sales to fund dividend payments.
Analysts at Standard Chartered suggested the market bottom may be near. Geoffrey Kendrick, the bank’s global head of digital asset research, said Strategy’s next purchase could signal a low has been printed.
