Strategy reports ~$10.8B unrealized BTC loss after first BTC sale since 2022
Strategy (Michael Saylor’s firm) is under renewed scrutiny after reporting about $10.8B in unrealized losses on its BTC holdings. The concern grew because the company also sold 32 BTC in recent weeks—its first Bitcoin sale since the end of 2022.
On social media, CNBC host Jim Cramer questioned whether Bitcoin’s latest decline is being “killed,” while longtime skeptic Peter Schiff argued the move signals investors are exiting BTC to limit losses or rotate capital. Schiff framed the sales as a direct challenge to Strategy’s long-running BTC treasury thesis.
Commentators focused on Strategy’s leveraged accumulation model and financing risk. Analyst Ross Gerber said market moves resemble “unchecked greed,” while Schiff warned that continued BTC buying may depend on raising new equity—potentially at a discount—making future funding harder and weakening investor confidence.
No direct response from Strategy is reported. For traders, the key read-through is that Strategy’s BTC treasury strategy may face greater scrutiny around debt/equity capacity, which can amplify sentiment swings for BTC in the near term.
Bearish
Strategy’s BTC treasury thesis is being tested by two linked facts: an ~$10.8B unrealized BTC drawdown and the first post-2022 BTC sale (32 BTC). Even if the sale size is small versus total holdings, it breaks the market’s expectation of a “never sell” posture and invites questions about leverage-driven funding capacity.
In the short term, traders may treat this as a negative sentiment catalyst for BTC: corporate balance-sheet fears can trigger risk-off positioning and widen drawdown tolerance. In the long term, the key variable is whether Strategy must issue equity (possibly at a discount) to keep buying BTC—any perceived dilution risk or reduced ability to sustain accumulation would likely weigh on confidence in leveraged BTC treasury structures.
Overall, the combined critique from major commentators and the financing/leveraged-model uncertainty skew the near-term narrative toward downside risk for BTC.