Strategy’s Bitcoin Bet Dips Underwater as Firm Adds to $56 Billion BTC Stash

MicroStrategy, the enterprise software firm that has aggressively transformed itself into the world’s largest corporate holder of Bitcoin (BTC), has seen its massive portfolio temporarily dip into unrealized losses following recent market volatility. Despite this setback, the company, often referred to as ‘Strategy’ in investment circles, remains committed to its accumulation plan, recently adding to its approximately $56 billion BTC stash.

The development marks a critical moment as the market watches whether Chairman Michael Saylor’s unwavering conviction can withstand short-term price pressure. Recent acquisitions, funded primarily through convertible notes, have pushed the firm’s aggregate average cost basis close to or slightly above the current trading price of Bitcoin, causing the holding to be technically ‘underwater’ on a paper basis for the first time in several months.

While the exact average cost basis fluctuates with every purchase, analysts estimate that MicroStrategy’s cost is now near the $70,000 range. When BTC trades below this threshold, the firm incurs an unrealized loss, reversing the substantial gains booked earlier in the year when Bitcoin hit all-time highs.

However, the strategy is built on long-term conviction, not short-term speculation. Saylor has consistently argued that Bitcoin is the premier institutional asset, and temporary downturns are merely opportunities to increase holdings. The firm holds over 214,400 BTC, representing a significant portion of all available circulating supply, solidifying its position as the ultimate corporate Bitcoin proxy stock.

Source: Strategy’s Bitcoin Bet Dips Underwater as Firm Adds to $56 Billion BTC Stash