#What is the Current Status of Strategy's Bitcoin Holdings?
Strategy, recognized as the largest corporate holder of Bitcoin, is currently experiencing significant unrealized losses. With Bitcoin having recently fallen below $74,000 during a widespread market decline, the firm faces losses exceeding $9 billion on its digital asset treasury.
The company's Bitcoin holdings consist of 717,722 BTC, which were acquired at an approximate cost of $54.5 billion, representing an average purchase price of about $76,000 per coin. As Bitcoin trades around $63,100 today in early New York trading hours, the market value of Strategy's holdings has plummeted to approximately $45 billion. This decline correlates with a broader market downturn.
How Does the Market Movement Affect Bitcoin?
Bitcoin has recorded a decline of about 30% this year and is on track for its most significant monthly loss since 2022. Data from CoinGecko indicates that the cryptocurrency has dropped approximately 19% just in the month of February. Furthermore, this marks its fifth consecutive month of losses – a streak not witnessed since 2018.
This downward trend is partly driven by external factors, such as President Trump's announcement intending to impose global tariffs of 15%, creating a risk-averse sentiment across various markets. The overall cryptocurrency market capitalization has contracted by roughly 4% in the last 24 hours, now totaling around $2.2 trillion.
What is the Company's Response to These Losses?
Despite the significant drop in asset value, Strategy’s Executive Chairman has made it clear that there is no intention to liquidate their Bitcoin holdings. Remarkably, the company recently completed its 100th Bitcoin acquisition, purchasing 592 BTC for about $40 million. This purchase was funded through sales of stock, indicating ongoing confidence in Bitcoin's long-term value.
Since declaring Bitcoin as its primary reserve asset in August 2020, Strategy has amassed approximately 3.4% of the total Bitcoin supply via equity and debt transactions.
How Are Strategy's Shares Performing?
The unfolding market conditions have impacted Strategy's stock, which experienced a decline of over 5% on Monday, ending the day at $124. This drop further extended in after-hours trading, resulting in a nearly 20% loss year-to-date, as reported by Yahoo Finance.