MicroStrategy Faces $1 Billion Paper Loss as Bitcoin Drops

Bitcoin’s (BTC) brief fall below $75,000 on February 1, 2026, pushed Strategy’s (formerly MicroStrategy) BTC holdings into unrealized losses of around $1 billion.

The drawdown comes amid signals of additional purchases from the world’s largest corporate Bitcoin holder, which has continued its long-standing accumulation strategy, often buying BTC in consecutive weekly streaks

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(Micro) Strategy’s Position Under Pressure Amid Bitcoin’s Latest Decline

Bitcoin has continued to face market headwinds, extending its decline by more than 12% over the past seven days. During early Asian trading hours on February 1, the asset fell below $75,000 for the first time since early April 2025, briefly touching a low of $74,544 on Binance before staging a modest rebound.

BeInCrypto Markets data showed that at press time, Bitcoin was trading at $75,826, down 3.9% over the past 24 hours. The latest pullback has weighed on major corporate holders, including Strategy.

Strategy, under Executive Chairman Michael Saylor, holds 712,647 BTC with an average purchase cost of $76,037 per coin. At current prices, Strategy’s Bitcoin treasury reflects unrealized paper losses of approximately $150 million. When Bitcoin dipped to $74,544 earlier in the session, those losses briefly expanded to nearly $1 billion.

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The losses are not limited to Strategy. Data from BitcoinTreasuries showed that several other corporate Bitcoin holders are also sitting on significant unrealized losses.

Metaplanet’s Bitcoin position is currently down 30.13%, while Strive’s holdings reflect unrealized losses of 28.97%. GD Culture Group’s Bitcoin treasury is showing a paper loss of 35.59%.

Still, Strategy is committed to its Bitcoin strategy, with Saylor hinting at further BTC accumulation. If the firm buys Bitcoin again this week, it would mark its fifth BTC purchase of the year. Its largest acquisition to date occurred on January 20, when the company bought 22,305 Bitcoin.

To support continued purchases, Strategy has raised the dividend rate on its Series A Perpetual Stretch Preferred Stock (STRC) to 11.25%, effective February 2026, aiming to attract additional capital. Overall, proceeds from STRC sales have financed the acquisition of more than 27,000 BTC.

Bitcoin’s decline has had broader implications beyond corporate holders’ balance sheets. According to data from CryptoQuant, Bitcoin is now trading below the Bitcoin US ETF Realized Price, suggesting that US spot Bitcoin ETF investors are, on average, holding positions at an unrealized loss.

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The move below ETF cost bases could test whether institutional buyers remain committed should prices stay depressed.

Bitcoin Risks Deeper Pullback as Analysts Flag $55,000 to $58,000 Downside Zone

As Bitcoin’s drawdown extends, the near-term outlook has grown increasingly cautious. Some analysts warn that the asset could slide toward the $58,000 to $55,000 range.

Analyst PlanB pointed out that Bitcoin’s 200-week moving average currently sits near $58,000. At the same time, Bitcoin’s realized price, which represents the average on-chain acquisition cost of all circulating coins, has declined to around $55,000 and continues to trend lower.

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Momentum indicators have also weakened, with the Relative Strength Index falling below the neutral 50 level. Historically, Bitcoin has often retraced toward either the 200-week moving average or the realized price, suggesting a potential downside range between $55,000 and $58,000 if the pattern repeats.

With Bitcoin now trading below key cost bases and long-term support levels in focus, the coming weeks may prove critical in testing institutional conviction. A sustained move lower could once again place corporate holders under scrutiny, as a sharper downturn would amplify unrealized losses across large Bitcoin treasuries.