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.
MicroStrategy's Bitcoin holdings have incurred an $11.2 billion unrealized loss as the cryptocurrency's price dropped below the company's average purchase price. Michael Saylor attributed the downturn to ETF outflows and AI infrastructure spending. The company holds 843,706 BTC acquired at an average of $75,699 per coin.

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. The company'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.
This event highlights the significant financial risk MicroStrategy faces due to its large Bitcoin holdings and its reliance on the cryptocurrency's price appreciation, impacting its stock and preferred stock valuations.