Key facts
- MicroStrategy's Bitcoin holdings have an unrealized loss of $11.2 billion.
- The company's average purchase price for Bitcoin is $75,699 per coin.
- MicroStrategy holds 843,706 Bitcoin.
- CEO Michael Saylor cited ETF outflows and AI infrastructure spending as factors impacting Bitcoin.
- MicroStrategy's preferred stock (STRC) has fallen below its intended $100 value.
MicroStrategy's substantial Bitcoin holdings have fallen deep into paper-loss territory, with an unrealized loss now topping $11.2 billion. The cryptocurrency's price has dropped below the company's average acquisition price of $75,699 per coin. MicroStrategy currently holds 843,706 Bitcoin (BTC), acquired at a total cost basis of $63.8 billion, but its current value has sunk to $52.6 billion. CEO Michael Saylor attributed the pressure on Bitcoin to ongoing outflows from Bitcoin ETFs and significant spending on AI infrastructure. He also stated that the AI boom is drawing capital away from Bitcoin, indicating a shift in investment focus towards artificial intelligence technologies. Grayscale's head of research, Zach Pandl, commented that MicroStrategy's leveraged Bitcoin model is stressed, potentially limiting its ability to buy more BTC and possibly forcing sales. The firm's recent sale of 32 BTC, though small relative to its holdings, has weighed on market sentiment. MicroStrategy's variable-rate perpetual preferred stock, STRC, has also seen its value decline, trading at $94.6, below its intended $100 value. MicroStrategy's stock (MSTR) was down 1.5% in pre-market trading on Thursday.