Dogecoin Co‑Founder Criticizes Strategy’s $90M Bitcoin Buy Amid $5B Unrealized Losses
Dogecoin co‑founder Billy Markus publicly criticized Strategy (MicroStrategy) after the company disclosed a $90 million purchase of 1,142 BTC at an average price of $78,815, bringing its holdings to 714,644 BTC. Markus mocked the timing on X, questioning the wisdom of buying “this expensively” amid recent volatility. Strategy’s total Bitcoin investment stands at about $54.35 billion with a blended average cost near $76,056 per BTC; with current prices below that level the firm shows more than $5 billion in unrealized losses. The purchase was funded by issuing 616,715 MSTR shares, netting roughly $89.5 million. Strategy recorded a $12.4 billion loss in Q4 2025 partly attributed to unrealized digital‑asset markdowns under fair‑value accounting. CEO Phong Le and founder Michael Saylor reaffirmed their accumulation stance, saying they won’t sell unless BTC falls to $8,000 and stays there for five years — a threshold tied to convertible‑note obligations through 2032. Market reaction included skepticism from analysts and a pullback in MSTR shares, while Bitcoin traded around $69.5k at the time of reporting. Key trading takeaways: elevated accumulation by a large holder funded via equity raises dilution and accounting risk; sizable unrealized losses can pressure stock correlated with BTC; short‑term volatility may persist while Strategy holds its long‑term buy‑and‑hold policy.
Bearish
The news is bearish for near‑term market sentiment. A high‑profile buyer (Strategy) continuing to accumulate Bitcoin at elevated prices while sitting on more than $5 billion in unrealized losses increases perceived downside risk and may amplify selling pressure on correlated assets, notably MSTR stock. Funding purchases via equity issuance raises dilution concerns and signals financial strain under fair‑value accounting — similar to prior episodes when firms with large crypto treasuries posted steep markdowns and their stocks underperformed (e.g., early 2022 drawdowns for crypto‑heavy balance sheets). In the short term, traders may see higher volatility as market participants react to accumulation funded by share sales and to any further negative earnings disclosures. In the medium to long term the impact is mixed: if Bitcoin recovers above Strategy’s blended average cost, selling pressure eases and conviction in long‑term accumulation is reinforced; but prolonged weakness could force mark‑to‑market pain, hurt investor confidence, and pressure both BTC and MSTR. For traders: expect short‑term risk‑off moves, faster correlation between BTC price swings and MSTR, and opportunities for mean‑reversion trades around volatility spikes.