The price of Bitcoin recently fell below the $75,000 mark, leading to unrealized losses for Michael Saylor's Bitcoin asset management company, Strategy. The company holds over 712,000 Bitcoins, and as the price of Bitcoin continues to decline, its unrealized losses have exceeded $900 million.
Bitcoin tests the $75,000 mark, strategy falls into unrealized losses.
According to an X post shared by the on-chain analytics platform Lookonchain, the Bitcoin held by Michael Saylor's Strategy company (formerly MicroStrategy) is facing significant unrealized losses. With Bitcoin prices hovering around the $75,000 low, the company's unrealized losses exceed $900 million.
Currently, Strategy holds 712,647 Bitcoins, with an average purchase price of about $76,037 per coin. The price of Bitcoin briefly fell below $75,000, putting it under the company's average purchase cost. As reported by CoinGape recently, this decline has caused the book value of Strategy's Bitcoin holdings to fall below the holdings. However, analysts believe this does not pose a risk of forced selling, as these Bitcoins are not tied to any debt and have never been used as collateral.
As of the time of writing, the price of Bitcoin is $75,706, having dropped 3.86% in the past 24 hours. Over the past week and month, Bitcoin prices have fallen by 13% and 16%, respectively, showing a more significant decline. This negative momentum is also reflected in trader sentiment, with 24-hour trading volume decreasing by about 14% to $63.78 billion.
Michael Saylor hinted at purchasing new Bitcoin.
Despite the sharp drop in Bitcoin prices, which has led to subsequent unrealized losses, Michael Saylor hinted that Strategy will continue to buy Bitcoin. On Sunday, Saylor suggested in his usual tweet 'More Oranges' that another round of purchases may be imminent.
In recent months, Michael Saylor has been posting messages with orange dots over the weekends, suggesting that Strategy will buy Bitcoin. These posts are usually followed by formal announcements on Mondays.
Notably, despite the drop in Bitcoin prices and facing numerous pressures, Strategy's stock price has shown relative resilience. This is not due to Bitcoin critic Peter Schiff questioning Strategy's Bitcoin reserve strategy. Schiff pointed out that the company has spent over $52 billion to purchase more than 700,000 Bitcoins, causing MSTR's stock price to fall 70% from its peak.
MSTR stock closed at $149.71 on the latest trading day, up 4.55%. This reflects investors' confidence in the company's long-term focus on a Bitcoin strategy.