The pioneer cryptocurrency’s recent dip below the $75k level has pushed Michael Saylor’s Bitcoin treasury firm, Strategy, into unrealized losses. The company, which boasts more than 712,000 BTC, is now sitting at an unrealized loss of over $900 million as the Bitcoin price continues to slip.
Strategy Slips into Unrealized Loss as Bitcoin Tests $75K
According to an X post shared by on-chain analytics platform Lookonchain, Michael Saylor’s Strategy, formerly known as MicroStrategy, has faced significant unrealized losses for its Bitcoin holdings. As BTC hovers near the low of $75k, the company suffers over $900 million in unrealized losses.
Currently, Strategy holds a total of 712,647 BTC, acquired at an average price of about $76,037 per coin. The Bitcoin price’s drop below the $75k mark has briefly pushed the prices under the company’s average purchase cost per coin. As CoinGape reported recently, this decline has placed Strategy’s BTC holdings underwater on paper. However, analysts believe that this does not pose a risk of forced selling as these coins are not tied to any debt and have never served as collateral.
As of press time, BTC price is marked at $75,706, down by a notable 3.86% over the last 24 hours. Over the past week and month, the crypto has seen more notable declines of 13% and 16%, respectively. This negative momentum is also reflected in the traders’ sentiment, as the 24-hour volume is now down by about 14%, reaching $63.78 billion.
Michael Saylor Signals Fresh Bitcoin Purchases
Despite this Bitcoin price crash and the subsequent unrealized losses, Michael Saylor has hinted at Strategy’s continued BTC purchase. With his usual thread, “More Oranges,” Saylor, on Sunday, suggested another purchase may be on the way.
Over the past months, Michael Saylor has been using these weekend posts referencing orange dots to hint at Strategy’s BTC buys. These posts are usually followed by an official announcement on Monday.
It is worth noting that the Strategy stock price has shown relative resilience despite the BTC price decline and the surrounding pressure. This comes despite Bitcoin critic Peter Schiff’s criticism of Strategy’s BTC treasury strategy. He stated that the company spent over $52 billion to purchase more than 700,000 BTC, with the MSTR stock dropping 70% from its peak.
MSTR shares closed the latest trading session higher at $149.71, up 4.55%. This reflects investor confidence in the company’s long-term Bitcoin-focused strategy.
Source: https://coingape.com/michael-saylors-strategy-faces-900m-unrealized-loss-as-bitcoin-hovers-near-75k/
