Red Alert: 40% Of Strategy’s Bitcoin Holdings Are Losing Money—Analysts
Overview
Recent developments in the cryptocurrency market have seen Bitcoin experience a significant decline, dropping nearly 15% and trading around $90,300. This downturn has raised concerns regarding the financial health of prominent Bitcoin holders, specifically Michael Saylor’s Strategy, which has seen a substantial portion of its Bitcoin holdings fall into unrealized losses.
Recent Bitcoin Price Movement
Bitcoin’s price has seen a sharp decrease, falling below the $100,000 and $95,000 thresholds. As of Wednesday, it trades at approximately $90,300. This decline is crucial as it highlights the volatility of the cryptocurrency market and the risks even large investors face during downturns.
Strategy’s Holdings and Recent Purchases
According to company disclosures, Strategy has expanded its Bitcoin holdings by acquiring an additional 8,178 BTC for approximately $835.6 million at an average price of around $102,171 per Bitcoin. Following this purchase, Strategy’s total holdings now amount to 649,870 BTC, representing roughly 3.2% of the circulating Bitcoin supply. The company reports that it has spent about $48 billion on these holdings, which currently have a market value of approximately $59.38 billion, reflecting an overall paper gain of about 22% or around $11 billion.
However, CryptoQuant’s analysis indicates that roughly 40% of Strategy’s Bitcoin stash is now showing unrealized losses. The latest purchase of 8,178 BTC has already declined by around 10.5%, resulting in an estimated paper loss of $88 million within just a few days of acquisition. Additionally, Strategy made three separate smaller purchases earlier in November, totaling 9,062 BTC for approximately $931.1 million. At current market prices, these tokens are valued at about $827 million, representing a decline of just over 11% since their purchase.
Short-Term Losses Amid Long-Term Gains
Despite the current losses on newer acquisitions, Strategy’s overall position remains in the green. The company’s profit ratio stands at 22%, a significant improvement compared to the substantial losses experienced from mid-2022 to early 2023, when up to 75% of its holdings were underwater. At that time, the portfolio was down approximately 33%, equivalent to roughly $1.32 billion in paper losses.
Saylor’s strategy of treating price dips as opportunities to buy more Bitcoin aligns with the company’s purchasing behavior. However, this strategy has drawn criticism from some market participants.
Criticism and Market Sentiment
Peter Schiff, a noted gold investor, has openly criticized Strategy, arguing that the company’s rising average cost of Bitcoin, now around $74,433, is approaching market value. Schiff has labeled Strategy’s focus solely on Bitcoin as “a fraud” and has challenged Saylor to a live debate at an upcoming event. He suggests that if confidence in Bitcoin wanes, Strategy’s financial position could be jeopardized.
Impact on the Crypto Market
- The recent decline in Bitcoin’s price illustrates the inherent volatility in the cryptocurrency market, affecting even major holders.
- Strategy’s significant unrealized losses highlight the risks associated with large-scale Bitcoin investments, particularly during downturns.
- Market sentiment may shift as critics voice concerns about the sustainability of Bitcoin-focused investment strategies.
- The situation raises awareness among investors about the potential for losses, even among the largest market participants.
- The ongoing price fluctuations emphasize the need for investors to remain vigilant and consider both short-term and long-term implications of their investments.
Updated: 11/19/2025, 3:26:45 PM
