- Strategy, formerly MicroStrategy, turned a potential $32.6 billion profit on its Bitcoin (BTC) holdings into a $2.2 billion loss over four months.
- The company’s stock, MSTR, now trades at just 0.82x the value of its BTC, a 75% drop from its November 2024 high.
- Leadership, once adamant about never selling bitcoin, now officially discusses the possibility of selling to raise capital.
Over a dramatic four-month period, Strategy transformed an enormous unrealized profit on its bitcoin holdings into a substantial loss, primarily due to founder Michael Saylor’s reluctance to sell. On October 6, the company held 640,031 BTC acquired for about $74,000 each but valued at $125,000 in the market, representing a $32.6 billion paper gain.
However, market conditions shifted dramatically by February. Consequently, as of yesterday’s Nasdaq close, the company now owns 713,502 BTC with an average cost of $76,052 per coin, data shows, while Bitcoin’s price had fallen to just $72,925.
This price reversal means the original October holdings alone swung from a $32.6 billion profit to a $670 million loss. Meanwhile, the company’s market capitalization has plummeted to just 0.82x the value of its BTC treasury.
That figure represents a 75% decline from its November 2024 high of 3.4x. Management’s steadfast holding strategy has therefore left $33 billion in potential assets unrealized, less applicable taxes.
Previously, Saylor made devout proclamations about never selling the company’s bitcoin. Unfortunately, that position has deteriorated alongside most other metrics at Strategy.
Indeed, the CEO now discusses the possibility of selling, including in official company statements using euphemisms like raising capital. Moreover, the firm recently raised $1.44 billion through equity dilution without buying more bitcoin, opting instead to shore up US dollars.
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