Saylor downplays Bitcoin slide as Strategy faces $11B paper loss
Strategy’s Bitcoin stack has moved into a large unrealized loss as BTC fell below its average buy price. The company holds 843,706 BTC with a cost basis of $63.8 billion, while the position is now worth about $52.6 billion, leaving roughly $11.2 billion in paper losses. The downturn has also pressured Strategy’s funding structure: its variable-rate preferred stock STRC has slipped below its intended $100 par value to about $94.6, and MSTR was also lower pre-market. That could make future preferred-stock issuance harder if the firm keeps buying Bitcoin. Michael Saylor dismissed the drop as a capital rotation rather than a Bitcoin impairment, pointing to ETF outflows and AI investment. Bitcoin is down sharply over the past week and month. Some market observers say STRC trading below par is normal for preferred shares, while critics argue weaker pricing could force higher dividend costs and eventually more Bitcoin sales. Standard Chartered said a near-term Bitcoin bottom may be close depending on Strategy’s next purchase.
