Michael Saylor’s Strategy unrealized loss has surged to $9.5 billion after the Bitcoin price continued to decline to near $63,000. At press time, the Bitcoin price was trading at $63,096, a 4.5% decline in the last 24 hours and 7% in the last week.
Concurrently, Strategy Inc. Class A shares also moved lower in line with the recent decline in Bitcoin. The MSTR stock closed at $123.71, down $7.34 (5.60%) today, and in pre-market trading, the price was $122.17, down $1.54 (1.24%).
Strategy’s Position Deepens as Bitcoin Declines
Strategy’s latest filings show a sharper gap between its Bitcoin cost basis and market value. The company now holds 717,722 BTC. These coins were purchased for $54.56 billion at an average price of about $76,020 per coin. With Bitcoin trading between $63,000 and $66,000 in recent sessions, the position reflects an unrealized loss of about $9.5 billion.
The company’s newest purchase, as we reported, was when it acquired 592 BTC for $39.8 million. This buy was funded through the sale of 297,940 Class A shares. The share sale raised $39.7 million under the firm’s at-the-market program. The company stated that the funds were used to continue its regular accumulation plan.
Strategy has been buying Bitcoin each week for nine straight weeks. Its approach has remained steady even when Bitcoin showed weaker price action. The firm now controls about 3.4% of Bitcoin’s circulating supply, which keeps it as the largest corporate holder of the asset.
Unrealized Losses Grow Under New Accounting Rules
The $9.5 billion figure reflects a market-to-market calculation rather than a cash loss. Accounting standards require companies to report digital asset values based on market prices each quarter. Because of this rule, Strategy’s earnings now move more closely with Bitcoin price swings.
The company has not sold its Bitcoin to realize gains or losses. Executives have repeated that the holdings are part of a long-term plan. Michael Saylor has stated many times that the asset is viewed as a long-duration treasury reserve. The company has also said that price moves do not affect its intent to continue acquiring Bitcoin.
Strategy’s total Bitcoin value currently sits between $45 billion and $47 billion, depending on market conditions each day. The variation continues to create large quarterly changes in reported earnings. In a recent quarter, the firm reported a large loss driven mainly by Bitcoin’s decline, and the company noted that this was tied to price movements rather than core operations.
Funding Strategy and Equity Programs
Strategy continues to rely on equity programs to finance its Bitcoin purchases. The company has $37.4 billion in securities available for future sales. This includes about $7.8 billion in MSTR stock and $20.3 billion in STRK preferred stock.
Preferred stock issuances have become a key part of the firm’s financing structure. These include STRK, STRF, STRD, STRC, and STRE. Only STRK can be converted into common shares. Dividend payments range from 8 to 10%. A company spokesperson explained that “preferred dividends are discretionary, and non-payment does not require liquidation of Bitcoin.”
Source: Polymarket
Convertible notes remain another part of the capital stack. Strategy has stated, as we reported, that it can meet its $6 billion debt load even in a lower-price Bitcoin environment. The company said its liquidity position is managed to avoid forced sales of Bitcoin. Meanwhile, on Polymarket, 86% of traders have placed their bets that Strategy will hold its BTC holdings throughout the year.
Source: https://coinpaper.com/14871/mstr-stock-dips-5-as-michael-saylor-s-strategy-unrealized-loss-hits-9-5-b
