MicroStrategy Faces ~$10B Unrealized Bitcoin Loss as BTC Falls Below $60K
MicroStrategy holds 713,502 BTC with an average cost basis of $76,052 per coin. After Bitcoin slid below $60,000 in late April 2025 and more recently traded under $71,000, the company’s treasury now carries multibillion-dollar unrealized losses — estimates range from about $3.8 billion (at ~ $70.8K) up to roughly $10 billion (after the sub-$60K move). MicroStrategy began large-scale purchases in August 2020 under Michael Saylor and has repeatedly added to its position using debt and equity financing. The firm’s concentrated Bitcoin exposure has driven a sharp correlation between MicroStrategy stock (MSTR) and BTC sentiment; MSTR has suffered steep declines from its 2025 peak. Accounting rules treat crypto as indefinite-lived intangible assets, forcing impairment losses on declines but preventing upward revaluation until a sale, which amplifies reported volatility. Prominent investors warned sustained trading below key price thresholds could deepen losses and strain access to capital, potentially forcing risk-control measures or strategic changes if financing or shareholder support weakens. For traders: expect elevated volatility in BTC and BTC-proxy equities, increased sensitivity of MSTR to Bitcoin moves, possible credit/financing pressure on highly exposed firms, and the prospect of forced selling only if price weakness materially tightens funding or triggers covenants.
Bearish
The news is bearish for Bitcoin price in both the near term and possibly medium term. MicroStrategy’s large, concentrated BTC holdings and the reported multibillion-dollar unrealized losses increase the chance of heightened volatility and negative sentiment around BTC. If Bitcoin remains below key thresholds (notably $70K then $60K), institutional holders may face deeper mark-to-market losses, tighter access to capital, and potential margin or covenant pressure. Those pressures could force liquidity measures, including asset sales or reduced buying, which would add downward pressure on BTC. In the short term traders should expect elevated correlation-driven moves between BTC and BTC-proxy equities (notably MSTR) and spikes in volatility on negative headlines. Over the medium term, if financing strains or investor support for heavily exposed firms weakens, selling pressure could prolong bearish conditions. The accounting treatment (impairment on declines but no upward revaluation) also amplifies reported volatility and investor reactions, reinforcing downside risk until sentiment and price recover materially.