MicroStrategy faces $11.2B Bitcoin paper loss

MicroStrategy holds 843,706 Bitcoin acquired at an average price of $75,699 per coin, with a total cost basis of about $63.8 billion. A recent decline in Bitcoin reduced the reserve’s market value to roughly $52.6 billion, producing an $11.2 billion unrealized loss on the company’s dashboard. MicroStrategy’s variable-rate perpetual preferred stock, traded as STRC, was near $94.60 at the time of reporting. The company’s common shares were down about 1.5% in pre-market trading.

CEO Michael Saylor posted on X that ETF outflows are pressuring Bitcoin and that capital markets have directed about $400 billion into AI infrastructure over the past six months. He wrote, “This is a capital rotation, not a Bitcoin impairment. Volatility creates opportunity.”

The paper loss follows MicroStrategy’s recent sale of 32 BTC, the company’s first Bitcoin sale since 2022. MicroStrategy has used debt and perpetual preferred-stock issuances to fund Bitcoin purchases; a lower market price for STRC could affect the economics of future financings.

Ethereum-focused Bitmine Immersion Technologies filed to raise $300 million through a perpetual preferred stock offering. The company plans to offer 3 million shares of 9.5% Series A perpetual preferred stock at $100 per share, expected to trade under the symbol BMNP within 30 days of issuance. Bitmine plans to pay dividends weekly, which annualize to $9.50 per $100 share, and intends to fund those payments from income generated by staked Ether.

Onchain payment activity tied to software agents has grown on Coinbase’s Base network. A report found wallets interacting with the x402 protocol generated more than 100 million transactions within about nine months of the protocol’s launch. The x402 protocol allows software agents to make onchain payments through web requests so services can complete stablecoin payments without human approval. Early growth in the protocol’s activity was driven by a memecoin project called PING that required a payment to mint tokens.

MicroStrategy’s disclosures underscore the company’s continued reliance on Bitcoin as a primary treasury asset and the link between market flows, preferred-share pricing and the firm’s funding strategy. Saylor has framed current volatility as an opportunity to acquire more Bitcoin.