The latest Bitcoin correction has put significant pressure on the core investment thesis of Michael Saylor and his company Strategy.
During the recent market move, Bitcoin briefly dropped below the $70,000 level, directly impacting Strategy’s balance sheet. At the time of writing, Bitcoin is trading around $69,403, marking its lowest price since October 2024 and reinforcing the growing bearish sentiment across the crypto market.
Unrealized Losses and Market Pressure
Strategy currently holds 713,502 BTC, valued at approximately $49.9 billion at current prices. With an estimated average acquisition price close to $76,000 per BTC, the company is now facing an unrealized loss of roughly $4.4 billion on its Bitcoin position.
This drawdown comes amid broader signs of market stress. Bitcoin ETFs have shifted from inflows to heavy outflows, with outflows reaching $544.9 million on February 4, signaling a clear reduction in institutional risk appetite.
Saylor’s Long-Term Bitcoin Thesis
Since 2020, Michael Saylor has positioned Strategy as a leveraged Bitcoin exposure vehicle. The company has consistently raised capital through convertible debt and at-the-market (ATM) equity offerings, deploying the proceeds into BTC accumulation. This approach — often referred to as a “Bitcoin flywheel” — has allowed Strategy to continue buying during both bull and bear market phases.
Despite the scale of the current unrealized losses, Saylor’s strategy remains unchanged. Strategy continues to treat Bitcoin as a long-term monetary asset rather than a short-term trade.
However, the approach has drawn criticism from more traditional investors. Market participants focused on equities, gold, and commodities frequently view Strategy’s Bitcoin-heavy balance sheet as an exceptionally high-risk allocation — especially during prolonged market downturns like the current one.
Strategy acquired its Bitcoin holdings at an average price of around $76,052 per BTC. Despite current market conditions, the company has continued to add to its position, most recently purchasing 855 BTC between January 26 and February 1, 2026, at an average price of $87,974 per Bitcoin.