MicroStrategy Inc., the largest corporate holder of Bitcoin, is facing a significant paper loss on its massive cryptocurrency investment. According to recent filings, the company holds 717,722 BTC acquired at an average price of $76,020 per coin, representing a total cost basis of approximately $54.56 billion. With Bitcoin's price trading in the $63,000–$66,000 range, the position reflects an unrealized loss of about $9.5 billion.
The company's Bitcoin holdings now represent roughly 3.4% of the asset's total circulating supply. This financial update follows MicroStrategy's most recent purchase of 592 BTC for $39.8 million last week, marking its ninth consecutive week of Bitcoin accumulation. The firm funded this purchase through the sale of 297,940 Class A shares under its at-the-market program, raising $39.7 million.
The reported $9.5 billion loss is an accounting figure driven by mark-to-market rules, not a realized cash loss. Under current accounting standards, companies must report the value of digital assets based on quarterly market prices, which introduces significant volatility into reported earnings. MicroStrategy has not sold any of its Bitcoin and executives, led by CEO Michael Saylor, have consistently emphasized a long-term, buy-and-hold strategy. Saylor has repeatedly positioned Bitcoin as a "long-duration treasury reserve" asset, stating that short-term price movements do not affect the company's intent to continue acquiring it.
The company's financing strategy relies heavily on equity programs. MicroStrategy has $37.4 billion in securities available for future sales, including approximately $7.8 billion in MSTR common stock and $20.3 billion in various series of preferred stock (STRK, STRF, STRD, STRC, STRE). A company spokesperson clarified that "preferred dividends are discretionary, and non-payment does not require liquidation of Bitcoin." The firm also maintains it can service its $6 billion debt load even in a lower Bitcoin price environment and manages its liquidity to avoid forced sales.
Market reaction has been mixed. MicroStrategy's Class A shares (MSTR) closed at $123.71, down 5.60% ($7.34) on the day, reflecting the correlation with Bitcoin's price decline. On social media and trading platforms, critics have raised concerns about dilution, leverage, and long-term balance sheet pressure. However, supporters point to historical cycles where MicroStrategy endured similar paper losses before Bitcoin's price recovered. Notably, on prediction market Polymarket, 86% of traders are betting that MicroStrategy will hold its Bitcoin throughout 2026.
