Why is Strategy facing an $11.2 billion paper loss?

Strategy holds 843,706 Bitcoin purchased at an average price of $75,699 per BTC. With Bitcoin trading around $63,000, the value of the company's holdings has fallen below its acquisition cost, creating an estimated unrealised loss of $11.2 billion.

How much Bitcoin does Strategy own?

Strategy owns 843,706 BTC, making it the largest corporate holder of Bitcoin in the world. The company acquired the position at a total cost of approximately $63.8 billion.

Are Strategy's losses realised or unrealised?

The losses are unrealised, meaning the company has not sold most of its Bitcoin holdings at a loss. The value of the treasury could recover if Bitcoin's price rises in the future.

Why is Michael Saylor not worried about the Bitcoin decline?

Michael Saylor argued that recent weakness reflects a capital rotation rather than a fundamental problem with Bitcoin. He pointed to ETF outflows and heavy investment into artificial intelligence infrastructure as temporary factors affecting market demand.

What role did Bitcoin ETF outflows play in the downturn?

Spot Bitcoin ETFs recorded approximately $4.4 billion in outflows over 13 trading days. Saylor believes these outflows contributed to selling pressure and weighed on Bitcoin's market price.

What is STRC and why are investors watching it?

STRC is Strategy's variable-rate perpetual preferred stock, which has fallen below its intended $100 value and was trading around $94.60. The decline matters because Strategy uses capital market instruments to help finance its Bitcoin acquisition strategy.

Could the drop in STRC affect Strategy's Bitcoin strategy?

Potentially. If investor demand for STRC weakens, it could become more expensive for Strategy to raise capital through preferred share offerings. This may affect the pace of future Bitcoin purchases.

Why are some analysts concerned about Strategy's position?

Critics argue that falling Bitcoin prices and weaker preferred share performance could limit Strategy's financing options. Some worry that if capital markets become less supportive, the company may eventually need to sell Bitcoin or raise funds on less favourable terms.

Cryptocurrency

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Strategy's Bitcoin losses top $11B

Written by Brie CarterPublished Jun 5, 2026, 2:18 AM

Strategy is facing renewed scrutiny after the recent Bitcoin downturn pushed its massive cryptocurrency holdings into deep paper-loss territory.

The company holds 843,706 Bitcoin acquired at an average price of $75,699 per coin, giving it a total cost basis of approximately $63.8 billion, but the value of those holdings has fallen to about $52.6 billion as Bitcoin trades near $63,000.

According to Strategy's treasury dashboard, the decline has resulted in an unrealised loss of roughly $11.2 billion, with Bitcoin now trading below the company's average acquisition cost.

The pressure has extended beyond Bitcoin itself, with Strategy's variable-rate perpetual preferred stock STRC falling below its intended $100 value to around $94.60, while shares of Strategy declined in pre-market trading.

“This is a capital rotation, not a Bitcoin impairment. Volatility creates opportunity,”

Said Michael Saylor, arguing that ETF outflows and significant investment into artificial intelligence infrastructure have temporarily weighed on Bitcoin demand.

Spot Bitcoin ETFs have experienced approximately $4.4 billion in outflows over the past 13 trading sessions, contributing to market weakness as Bitcoin declined more than 20% over the past month.

While some investors, including Scott Melker, argued that STRC's discount reflects normal preferred-share market behaviour, critics such as Peter Schiff warned that sustained weakness could increase financing pressures and potentially accelerate future Bitcoin sales, though analysts at Standard Chartered suggested the market may be nearing a bottom if Strategy resumes buying BTC.

At the time of reporting, Bitcoin price was $63,176.32.