Strategy’s $59.8B Bitcoin Treasury Is Underwater as BTC Falls Near $60K
Strategy (formerly MicroStrategy) holds 713,502 BTC (≈ $59.75 billion) as of Feb 1, 2026, with a total cost basis of $54.26 billion and an average purchase price of $76,052 per BTC. With Bitcoin trading near $60,000, Strategy’s treasury is underwater. In 2025 the firm reported a full-year BTC yield of 22.8% and net BTC gains of 101,873. The company added 41,002 BTC in January 2026. Strategy raised $25.3 billion in 2025 to support its BTC holdings and preferred stock offerings and maintains a $2.25 billion USD Reserve covering over 2.5 years of preferred dividends and interest. Q4 operating loss widened to $17.4 billion — driven entirely by unrealized digital asset losses — versus a $1.0 billion operating loss in Q4 2024 under the previous accounting model; net loss for the quarter was $12.4 billion, up from $670.8 million a year earlier. The company’s pivot to Bitcoin since 2020 and rebranding to Strategy made BTC central to its balance sheet and capital instruments (including STRC). Critics and index providers have questioned whether heavy BTC holdings should affect index inclusion; Strategy has failed S&P 500 inclusion attempts in 2025. Concerns persist that further BTC price declines could strain access to capital and amplify financial stress for large corporate holders.
Bearish
Strategy’s large BTC position (713,502 BTC) being underwater reduces perceived balance-sheet resilience for a major corporate holder. The Q4 impairment-driven operating loss ($17.4B) and big net loss increase signal heightened volatility risk tied to corporate treasuries. Short-term, this can amplify selling pressure or discourage institutional buyers concerned about counterparties with heavy BTC holdings — a bearish pressure on BTC price. Market sentiment can worsen if more firms disclose mark-to-market losses, possibly tightening access to capital. Long-term, the impact is neutral-to-negative until price recovers above the company’s high average cost; if BTC rallies sustainably, Strategy’s thesis (BTC as a treasury asset) could regain credibility. Historical parallels: MicroStrategy’s past large BTC purchases have correlated with higher volatility around disclosure events, and large unrealized losses have previously pressured corporate issuers’ equity and debt markets. Traders should monitor: on-chain flows, Strategy’s future purchases/sales, margin/leverage signals in credit markets, and updates on index inclusion or regulatory actions — all of which can quickly swing short-term market direction.