Michael Saylor's Strategy Faces Nearly $900M in Unrealized Losses as Bitcoin Dips Below Average Purchase Price

Strategy (formerly known as MicroStrategy), led by prominent Bitcoin advocate Michael Saylor, has incurred significant paper losses on its Bitcoin balance sheet. According to the latest data, Strategy's balance has gone into the red by approximately $900 million due to Bitcoin's price falling below the average purchase price of $76,037 per coin. The current Bitcoin price is around $75,000, leading to unrealized losses.

The company recently announced the acquisition of an additional 855 BTC for $75 million at an average price of $87,974 per coin. This increased Strategy's total holdings to 713,502 BTC, valued at $55.5 billion at current market prices. The total cost of acquiring all coins is $54.26 billion, with an average price of $76,052 per BTC, including fees and expenses.

Bitcoin's drop below $75,000 in early February 2026 (with a low of $74,541) caused the value of Strategy's holdings to temporarily fall to $53.2 billion, generating losses of about $1 billion. This is the first such dip since 2023, highlighting the risks of the continuous Bitcoin accumulation strategy through stock issuances and debt instruments.

Despite the losses, Michael Saylor continues to show confidence in Bitcoin. In recent posts on X, he hinted at further purchases using the phrase "More Orange" (a nod to Bitcoin's color). The company's strategy has been ongoing for over 2000 days, and Saylor shared a purchase chart where the current price is close to the average entry level.

To fund the purchases, Strategy raised the dividend rate on its perpetual preferred shares Series A (STRC) to 11.25% starting February 2026 to attract additional capital. In the last period, the company acquired over 27,000 BTC using proceeds from stock sales.

Analysts note that Strategy's shares (MSTR) have also declined, reflecting Bitcoin's volatility. The consensus target price for the shares is $480.53, with growth potential. This situation underscores how corporate Bitcoin treasuries, like Strategy's, the largest among public companies (3.39% of total BTC supply), are sensitive to market fluctuations.

Experts advise investors to monitor Strategy's quarterly reports, where a loss of $18.64 per share is expected for Q4 2025. Despite the challenges, Saylor's strategy remains unchanged: Bitcoin as the primary asset for long-term growth.