MSTR Shares Crashes to 16-Month Lows on Strategy's $4.3B BTC Loss

Strategy’s massive Bitcoin treasury has plunged into the red after the cryptocurrency’s latest decline pushed prices below the company’s average acquisition cost. 

Bitcoin briefly dipped below the $70,000 mark in recent hours, but has since recovered to trade at around $70,577 at the time of writing. 

BTC price (Source: CoinCodex)

Even with the recovery, the largest crypto by market cap remains more than 6% down on the 24-hour time frame. Strategy is now also sitting on an unrealized loss of more than $4.1 billion, data from SaylorTracker shows.

Bitcoin Drop Pushes Strategy Below Cost Basis

Bitcoin’s recent downturn has placed pressure on Strategy’s balance sheet, as the market price dipped beneath the firm’s estimated average purchase price of roughly $76,000 per coin. 

The company holds approximately 713,502 BTC, making it the largest corporate holder of Bitcoin and controlling more than 3% of the total supply.

At current market levels near $70,000, the value of Strategy’s holdings has fallen to the low-$50 billion range, compared with a higher aggregate cost basis. 

The development marks a significant reversal from late 2025, when Bitcoin traded near all-time highs and Strategy’s holdings were deep in profit. Since then, the asset has fallen sharply, at one point dropping to around 45% from its peak, triggering renewed scrutiny of the company’s highly leveraged BTC strategy.

Balance Sheet Pressure Builds

The decline is not just a paper loss. Analysts have noted that falling Bitcoin prices could create real balance-sheet strain if the downturn persists.

Strategy currently carries around $8.2 billion in convertible debt that matures beginning in 2027. While the company’s Bitcoin holdings still exceed its debt obligations by a wide margin, credit analysts have warned that a prolonged or deeper market slide could increase refinancing risks or force difficult capital allocation decisions.

Strategy’s stock (MSTR) has already reflected those concerns. Shares have fallen more than 70% from their 52-week high to 16-month lows, moving largely in tandem with Bitcoin’s price and reinforcing the narrative that the company functions as a leveraged proxy for the cryptocurrency.

MSTR price (Source: CoinCodex)

Saylor Remains Unmoved by Downturn

Despite the unrealized losses, Executive Chairman Michael Saylor has shown no signs of changing course. The company recently purchased 855 BTC for approximately $75 million during the downturn, continuing its long-standing strategy of buying the asset through both bull and bear cycles.

Since the start of 2026, Strategy has added roughly 40,000 BTC to its reserves, signaling continued conviction in Bitcoin’s long-term trajectory.