Strategy's Bitcoin Holdings Fall to $11.2B Unrealized Loss

Strategy's Bitcoin holdings have fallen to an unrealized loss of about $11.2 billion after Bitcoin dropped below the company's average acquisition price of $75,699. The firm's 843,706-BTC position, with a cost basis of $63.8 billion, is currently valued near $52.6 billion according to BitcoinTreasuries data. Executive chairman Michael Saylor attributed the decline to a temporary capital rotation into artificial intelligence rather than a deterioration in Bitcoin's long-term outlook, citing roughly $400 billion in AI infrastructure spending drawing investment away from digital assets.

MSTR Shares and Preferred Stock Decline in Pre-Market Trading

MSTR shares slipped about 1.5% in pre-market trading and are down roughly 14% over the week. The company's STRC perpetual preferred stock traded near $94.6, below its target value. Bitcoin has dropped about 13.8% over the week and more than 20% over the month. Spot Bitcoin exchange-traded funds have shed about $4.4 billion over 13 trading days as institutional demand cooled.

Strategy Sells 32 BTC in Late May to Fund Preferred Stock Distributions

Strategy sold 32 BTC late in May, its first disposal since 2022, to fund distributions on its preferred stock. The sale broke a long-standing pledge never to sell.

Michael Saylor Attributes Sell-Off to Capital Rotation into AI Infrastructure

"This is a capital rotation, not a Bitcoin impairment. Volatility creates opportunity," Saylor stated. He linked the move to roughly $400 billion in spending on artificial-intelligence infrastructure that he argued is temporarily drawing investment away from digital assets.

FAQ

What is Strategy's current unrealized loss on its Bitcoin holdings?

Strategy's 843,706-BTC position has fallen to an unrealized loss of about $11.2 billion. The position's cost basis is $63.8 billion against a current value near $52.6 billion, according to BitcoinTreasuries data.

Why did Strategy sell Bitcoin in late May?

Strategy sold 32 BTC late in May to fund distributions on its STRC perpetual preferred stock. This was the company's first Bitcoin disposal since 2022 and broke a long-standing pledge never to sell.