MicroStrategy logs $11.2B Bitcoin paper loss, Saylor defends plan
MicroStrategy posted an $11.2 billion unrealized loss after its 843,706 BTC, bought at a $75,699 average, fell below cost. CEO Michael Saylor cited ETF outflows and about $400 billion moving into AI.
MicroStrategy recorded an $11.2 billion unrealized loss after the market value of its Bitcoin holdings fell below the company’s cost basis. The firm holds 843,706 BTC acquired at an average price of $75,699 per coin, with a total cost basis of $63.8 billion and a current market value of about $52.6 billion.
Bitcoin traded near $63,157 at the time of reporting, down roughly 4.7% over 24 hours, 13.8% for the week and more than 20% in the last month. MicroStrategy disclosed the sale of 32 BTC this week, the company’s first sale since 2022.
MicroStrategy’s variable-rate perpetual preferred stock, STRC, traded around $94.60, below its $100 par value. The company’s common shares were down about 1.5% in pre-market trading, near $124.70.
Michael Saylor posted on X that mounting spot ETF outflows are “pressuring BTC” and that capital markets have moved roughly $400 billion into artificial intelligence infrastructure over the past six months. He added, “This is a capital rotation, not a Bitcoin impairment. Volatility creates opportunity.”
Investor Scott Melker wrote that STRC’s $100 par value is a stated liquidation preference and not a price floor, and described a roughly 5% discount as investors pricing risk or demanding higher yield.
Peter Schiff warned that a falling preferred price could force MicroStrategy to raise dividend payments to restore the share price, which could accelerate Bitcoin sales to meet those payments. He wrote, “MSTR will run out of cash much sooner, pulling forward Bitcoin sales to fund payments.”
Geoffrey Kendrick, global head of digital asset research at Standard Chartered, suggested a fresh MicroStrategy purchase of 320 BTC or 3,200 BTC could be interpreted as a sign the market low has been reached. MicroStrategy previously sold 704 BTC for tax-loss harvesting in 2022 and repurchased 810 BTC two days later.
Spot Bitcoin exchange-traded funds logged about $4.4 billion in outflows over 13 trading days. Market participants are watching MicroStrategy’s balance sheet moves and the prices of its common and preferred securities for implications on the company’s ability to raise capital for future Bitcoin purchases.
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