For years, Michael Saylor’s Strategy has been seen as either brilliantly bold or dangerously reckless for its heavy bet on Bitcoin [BTC]. Now, that bet is under serious pressure.
Recent data from The Kobeissi Letter shows that the company’s Bitcoin [BTC] holdings are sitting on more than $3.5 billion in unrealized losses.
In just four months, nearly $40 billion has been erased from its crypto portfolio, one of the toughest challenges yet to Saylor’s conviction in holding Bitcoin through extreme volatility.
Beyond the drop in prices, the deeper concern is how this strategy might impact corporate treasuries across the broader industry.
Is Bitcoin’s price the reason behind this?
Strategy’s losses are directly tied to Bitcoin’s recent crash.
At the time of writing, CoinMarketCap data showed BTC trading at $70,849.57, down 6.61% in a single day and 19% over the past week. For a company whose core strategy revolves around Bitcoin, such declines have dealt a significant blow to its financial health.
Consequently, Strategy’s stock also dropped, slipping to $129.09, a 4.17% decline.
Still, despite these setbacks, Strategy remains the largest corporate holder of Bitcoin, with about 713,502 BTC in its portfolio.
The Saylor playbook under pressure
But other companies that copied this strategy are now feeling the impact too.
At press time, MARA Holdings Inc. stock fell 8.51%, holding around 53,250 BTC, and hasn’t locked in losses yet, but pressure is building. Then, Metaplanet, often called Asia’s MicroStrategy, has dropped 30%. Additionally, its 35,102 BTC holdings are down about 34%.
Riot Platforms was no exception, as its stock fell by 7.82% while holding 18,005 BTC.
Together, these declines show that Saylor’s Bitcoin-focused strategy is being tested across the industry, not just at Strategy.
Current market conditions draw concern
Market sentiment has turned sharply negative.
The Crypto Fear and Greed Index has dropped into the extreme fear zone, which usually signals panic selling. At this stage, even long-term holders often start selling to avoid bigger losses.
This fear has brought back warnings from well-known critics.
Michael Burry, best known for predicting the 2008 financial crash, has warned that companies heavily exposed to Bitcoin may face significant financial risks.
Additionally, Peter Schiff, a longtime supporter of gold and Bitcoin skeptic, has pointed out that despite Bitcoin’s past gains, Strategy is now sitting on about a 3% unrealized loss.
He has used this to question Michael Saylor’s long-term strategy, mocking it publicly on social media.
Going by his style, Schiff put it best when he said,
“I’m sure the losses over the next five years will be much greater!”
Final Thoughts
- Extreme fear in the market signals that even loyal long-term holders are beginning to question their positions.
- Falling stock prices across crypto-linked firms suggest this is no longer just Strategy’s problem, it’s an industry-wide stress test.