Bitcoin Falls Below MicroStrategy’s $76k Cost Basis; MSTR Stock Drops 60% in Six Months, Raising Financing Pressure
Bitcoin briefly dipped to $75,678 on Feb 1, 2026, falling below MicroStrategy’s (Strategy/MSTR) reported average purchase cost of $76,037 per BTC — the first time since October 2023. MicroStrategy holds 712,647 BTC with a total acquisition cost of about $54.18 billion. The intraday drop wiped out the company’s paper profits and increases pressure on its ability to finance further Bitcoin purchases. MicroStrategy added over 26,000 BTC in January 2026 and continues an aggressive accumulation strategy; the company currently faces no immediate margin call or liquidation risk. However, MSTR equity has lost more than 60% of its value over the past six months, which can hinder capital-raising via at-the-market (ATM) offerings and reduce Michael Saylor’s flexibility to buy more BTC. Traders are watching whether the $76k level will act as support amid reduced speculative leverage and potential institutional or whale buy-the-dip activity. Key implications for traders: elevated volatility, potential short-term downside if selling persists, and a possible rebound scenario if large buyers absorb supply. Maintain strict risk and cash management.
Bearish
The news is bearish for short-term market sentiment. A drop below MicroStrategy’s $76,037 average cost — combined with a 60% decline in MSTR equity over six months — directly pressures the company’s financing flexibility and investor confidence. Historically, when large corporate holders see holdings move into unrealized losses, two effects commonly follow: (1) constrained ability to raise capital via equity issuance (ATM offerings) which limits further accumulation, and (2) potential forced selling or reduced buying if liquidity needs arise. The intraday wipeout increases risk aversion among retail and institutional traders, likely elevating volatility and downside bias in the near term. However, medium-to-long-term impact is mixed: if selling exhausts supply and institutional/whale buyers step in, price recovery is possible — similar to past episodes when large long-term holders weathered drawdowns and accumulation resumed. For traders: expect heightened short-term volatility and skew toward downside until clear support forms near the $76k level or macro liquidity/flow dynamics shift. Manage risk with tighter stops, lower leverage, and cash reserves to opportunistically buy on confirmed dips.